Gold output set to breach 1999 peak of 27 tons

Published: 18 May 2018

Zimbabwe's gold output is expected to surpass the all-time peak of tonnes after first quarter output rose 55% to 7.8 tonnes compared to the same period last year driven by a government facility for year driven by a government facility for small scale producers, a new report says.

Small-scale and artisanal gold miners have for the first time in more than 10 years, emerged as the cornerstone of the sector after smashing production records, producing and delivering more gold than large-scale mining houses, statistics have showed.

The country's primary producers yielded 24,8 tonnes of gold in 2017, according to official data. The sector has recovered from its three tonne nadir recorded at the height of Zimbabwe's economic crisis in 2008, but is still short of the 27,1 tonne peak reached in 1999.

Government has supported the artisanal miners who have increased use of improved mineral processing technology through a $40 million gold development facility by the central bank, targeting 179 small-scale miners.

There are over 4 000 recorded gold deposits in Zimbabwe but currently about 40 percent of these are being commercially worked on, according to official data The Financial Gazette obtained from the Ministry of Mines and Mining Development last week.

More than 90 percent of gold deposits in Zimbabwe are found in the Gemstone Belts. Mehluleli Dube, head of gold production at Fidelity Printers and refiners, told The Financial Gazette last week that during the year to December 31, 2017, gold output stood at 24,8 tonnes with the bulk of the yellow metal having been delivered by small miners.

He disclosed that large scale mining companies produced and delivered 11,6 tonnes of gold between January and December 2017, while small-scale producers, who are widely considered as invaders, criminals, chaotic and disorganised, delivered 13,2 tonnes of gold during the period.

The Chamber of Mines of Zimbabwe (CoMZ) said the significant rise in small mining outfits, which do not get the respect and recognition they probably deserve, saw the sector contributing 47 percent of the country's total gold output compared to 46 percent contributed by large gold mining companies last year. Secondary producers, such as platinum group metal miners, accounted for the balance. In 2016, small-scale and artisanal gold producers contributed 40 percent to the country's total gold output while during the same period, primary producers or the large-scale mining companies accounted for 55 percent of total gold output. Gold has remained the dominant mineral in the country, accounting for about 40 percent of mineral exports.

- Zim Ind

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