FIDELITY Gold Refinery (FGR) reported an 18,06% decline in gold deliveries to 2 568,2544 kilogrammes (kgs) last month, owing to rains and a slow start to the year, NewsDay Business understands.
In January, gold deliveries were recorded at 3 134,3456kgs.
Small-scale miners delivered 1 640,3149kgs with large scale delivering 927,9395kgs last month.
“Rains affect small-scale mining because most of our shafts are not properly reinforced. They are not strong enough for miners to go underground safely.
This limits production during the rainy season,” Young Miners Federation chief executive officer Payne Kapfuwa told NewsDay Business in an interview.
“At the beginning of the year, we usually face challenges because we are coming from the holidays.
“Many small-scale miners do not have reserves to buy the consumables needed to boost efficiency and production.”
Beyond seasonal weather patterns, however, economic challenges have also affected gold production.
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Consequently, importing essential equipment, chemicals, and other mining consumables has become difficult due to high costs and forex shortages.
Further, miners’ struggles are expected to rise owing to the export retention threshold being raised to 70%, from 75%, leaving less money for exporters.
“The economic environment hasn’t been friendly for small-scale miners. Challenges in bringing in equipment, chemicals, and other consumables have slowed down production,” Kapfuwa said.
“If we formalise operations, we can reduce these seasonal and economic challenges.
“It’s crucial for ensuring the growth and sustainability of small-scale mining.”
He emphasised that most of these challenges stemmed from the informal nature of small-scale mining, making it difficult for miners to plan, budget, and sustain operations effectively.
“We keep encouraging small-scale miners, especially young miners, to formalise and professionalise their operations,” Kapfuwa added.
“Many of the challenges we face — whether it’s production disruptions, financial struggles, or lack of resources — are linked to informal mining structures.”
Moving towards formalisation would allow small-scale miners to have better access to financing, improved safety standards, and steady production.
“As the months progress, production tends to pick up,” Kapfuwa said.
However, he added that for the sector to remain stable, there should be greater investment in infrastructure, and policy support.
Gold is Zimbabwe’s most exported product and thus the country’s biggest foreign currency earner.
