Zimbabwe's gold output improved by 33 percent to 10,3 tonnes in the third quarter ended September 30, 2024, compared to 7,7 tonnes achieved in the second quarter of the year, official data show.
Data from Fidelity Gold Refinery (FGR), the country's exclusive buyer of the yellow metal indicates that the first nine months of this year also saw gold output improving by 7,2 percent to 24,1 tonnes from 22,4 tonnes in the corresponding period last year.
The increase in output is largely attributable to a recent reversal of the 15 percent Value Added Tax (VAT) on gold deliveries by the Government.
The tax was scrapped through Statutory Instrument (SI) 105 of 2024, following a stakeholder engagement between the Government and players in the mining industry in July.
The Chamber of Mines of Zimbabwe, which represents large mining houses, is on record saying before the scrapping of the 15 percent VAT on gold, the policy promoted side-marketing of the mineral.
In an interview, economic commentator Ms Chipo Warikandwa said: "In light of the Government's efforts to improve production, the reversal of the 15 percent VAT on gold deliveries has incentivised producers in the sector.
"However, it is imperative for the Government and stakeholders in the mining industry to work together in addressing constraints facing the mining industry.
"For instance, the mining industry, despite its significant contribution to the economy, has not been spared from the energy challenges the country is presently battling with -- so it is imperative that authorities put their heads together and address power challenges and other major constraints hampering production."
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In its state of the mining industry report and prospects for 2025, the Chamber of Mines also cited multiplicity of taxes, high royalty, beneficiation of taxes, special capital gains tax and high fees and levies as some of the major hurdles facing the sector.
The mining industry is one of the major cornerstones of Zimbabwe's economy.
According to the Zimbabwe Investment and Development Agency (ZIDA), the mining sector accounts for 70 percent to Foreign Direct Investment, 80 percent to exports -- 19 percent to Government revenues, 3 percent to direct formal employment and 13,5 percent to national income.
The sector is endowed with vast mineral deposits that also include platinum; diamond; lithium; chrome; coal, and semi-precious stones such as amethyst, agate, antimony, and amazonite where small-scale miners are actively involved.
In the gold sub-sector, artisanal and small-scale miners have traditionally become active players delivering at least 60 percent of Zimbabwe's total output.
And thus in the nine-month period to September 2024, the small-scale mining industry delivered 14,5 tonnes while primary producers delivered 9,6 tonnes.
Gold is the country's biggest single export earner with the Government targeting 35 tonnes this year up 30,1 tonnes in 2023. By next year, the precious metal is expected to generate US$4 billion from nearly US$3 billion at present.
