Published: 2 hours ago

The Parliamentary Portfolio Committee on Mines and Mining Development has sounded alarm over reports that some large-scale gold miners are manipulating payment models and incentives crafted to support artisanal and small-scale miners (ASM).

According to the committee's report on responsible mining in the ASM sector, large-scale producers have been taking advantage of policies such as the five percent tax rebate and 100 percent foreign currency payments, tilting the market in their favour and undermining the sector-specific support measures.

Statistics from Fidelity Gold confirm that small-scale producers have consistently outperformed large-scale miners over the past five years, cementing their status as the backbone of Zimbabwe's gold economy. In 2020, ASM miners delivered 15 tonnes of gold against 10,5 tonnes from large-scale producers. The gap widened steadily, culminating in 2024 when ASM producers delivered 23,7 tonnes compared to 12,7 tonnes from their larger counterparts-accounting for nearly two-thirds of the country's total 36,4 tonnes.

In the first quarter of 2025 alone, ASM miners produced 5,7 tonnes, more than double the 2,7 tonnes recorded by large-scale operations.

The committee attributed the ASM sector's strong performance to favourable policies, including flexible payment structures and the "no questions asked" delivery system at Fidelity Refiners. To boost participation, the government recently lowered the tax rebate threshold from 20kgs to 500 grams, enabling more small-scale miners to benefit.

However, the committee warned that loopholes are being exploited. "A worrying trend has emerged where some large-scale producers are channelling their gold through small-scale miners to unfairly access incentives designed specifically for ASM," the report noted.

The Zimbabwe Miners Federation (ZMF) echoed these concerns, accusing large-scale operators of distorting the sector by disguising deliveries as ASM output.

To safeguard integrity, the committee recommended reviewing the Gold Trade Act to strengthen Fidelity Gold's role as the sole buyer, with amendments expected in Parliament by November 30, 2025. It also called on Treasury to fund the Ministry of Mines' ASM Gold Strategy by October 30, 2025, which includes clearing licencing backlogs, formalising operations, ensuring safe mining practices, and opening new ground for ASM activities.

Tax incentives for responsible and sustainable ASM operations were also proposed for introduction by October 31, 2025.

Analysts argue the figures highlight the ASM sector's resilience, adaptability, and critical role in sustaining rural livelihoods. But they caution that if left unchecked, the exploitation of incentives by large-scale miners could derail policy goals aimed at promoting responsible small-scale mining.

The committee's findings followed workshops and fact-finding missions across the country's eight mining provinces, engaging stakeholders from government, industry, and civil society.
- The Herald