Discover morePolitical Commentary PlatformWildlife Conservation MerchDigital Newspaper SubscriptionZIMBABWE'S sole gold buying, refining and exporting company, Fidelity Gold Refinery (FGR), is stepping up efforts to formalise the informal gold mining sector as part of broader measures to curb leakages and improve transparency in the country's gold value chain.
Artisanal and small-scale mining (ASM) gold leakages remain a major challenge in Zimbabwe, with millions of dollars' worth of gold believed to be lost every month through smuggling and illicit trade.
The losses are largely attributed to poor gold recovery techniques, unmonitored production and black-market pricing, with politically connected syndicates often accused of facilitating the movement of gold outside formal channels such as Fidelity Gold Refineries.
Estimates indicate that Zimbabwe loses approximately US$2 billion annually through gold smuggling, with informal miners identified as the main source of leakages.
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Briefing legislators during a visit by the Parliamentary Portfolio Committee on Public Accounts, FGR General Manager Peter Magaramombe said the company's ongoing formalisation strategy is expected to address many of the challenges affecting the sector.
"The work is expected to strengthen compliance and improve transparency within the gold value chain through improved transparency. 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 process, which is expected to begin soon, will improve monitoring systems and enhance the management of mineral resources.
"The process of formalisation is expected to begin soon and will assist in improving monitoring systems and management of mineral resources," he said.
He added that the initiative would help ensure that all gold purchased by FGR originates from legitimate and traceable sources.
In terms of production, FGR recorded 46.7 tonnes of gold output last year, surpassing its target of 40 tonnes.
The figure marks a significant increase from 2020, when gold output stood at around 26.7 tonnes, while the sector has maintained a steady upward trajectory over the past five years, recording 29 tonnes in 2021 and 35.8 tonnes in 2022.
Magaramombe expressed confidence that the company would meet its ambitious production target for this year.
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"I can assure you, honourable members, we will achieve this target of 50 tonnes for this year," he added.
