Published: 2 hours ago

Fidelity Gold Refinery is intensifying efforts to formalise Zimbabwe's artisanal and small-scale mining sector as part of broader measures aimed at curbing gold leakages and improving transparency within the country's gold industry.

Artisanal and small-scale mining remains one of the largest contributors to Zimbabwe's gold output, but the sector is also linked to widespread smuggling and illicit trade that authorities say costs the country billions of dollars annually.

Estimates indicate that Zimbabwe loses close to US$2 billion every year through gold smuggling, with informal miners and black-market syndicates frequently accused of diverting gold outside official channels.

Speaking during a visit by the Parliamentary Portfolio Committee on Public Accounts, FGR general manager Peter Magaramombe said the company's formalisation strategy was expected to strengthen accountability and improve monitoring across the gold value chain.

"The work is expected to strengthen compliance and improve transparency within the gold value chain. We need to formalise the artisanal and small-scale miners so that every day we know exactly where we are, where the gold is coming from and where it is going," he said.

Magaramombe said the formalisation programme would begin soon and was designed to improve monitoring systems while ensuring that all gold delivered to Fidelity originates from traceable and legitimate sources.

"The process of formalisation is expected to begin soon and will assist in improving monitoring systems and management of mineral resources," he said.

Zimbabwe's gold sector has recorded strong growth over the past five years.

According to FGR, national gold output reached 46.7 tonnes last year, exceeding the company's target of 40 tonnes.

Production has steadily increased from 26.7 tonnes in 2020 to 29 tonnes in 2021 and 35.8 tonnes in 2022.

Magaramombe said the refinery remains confident of achieving its 2026 production target of 50 tonnes.

"I can assure you, honourable members, we will achieve this target of 50 tonnes for this year," he said.

The formalisation drive forms part of wider government efforts to tighten oversight of the mining sector, improve foreign currency earnings and reduce illegal gold exports that continue to undermine the economy in Zimbabwe.
- newzimbabwe

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