Gold deliveries to Fidelity Refinery fall by 22%

In February, gold deliveries to Fidelity Refinery in Zimbabwe declined by 22 percent compared to January, with small-scale miners bearing the brunt of the decrease.

Apparently, large-scale producers outperformed small-scale miners in deliveries to the refinery.

Changes in payment modalities and a temporary shift to lithium mining impacted gold deliveries, but corrective measures have been taken.

Despite potential challenges, gold prices remain elevated, providing optimism for the sector’s future.

Gold is one of the country’s key foreign currency earners.

Zimbabwe’s mining sector is highly diversified, with close to 40 different minerals. The predominant minerals include platinum group metals (PGM), chrome, gold, coal, lithium, and diamonds.

The country boasts the second-largest platinum deposit and high-grade chromium ores in the world, with approximately 2.8 billion tons of PGM and 10 billion tons of chromium ore.

The sector accounts for about 12 percent of the country’s gross domestic product (GDP) and 80 percent of national exports.

The Minister of Mines had claimed the sector had the potential to generate $12 billion annually by 2023 if the government addressed challenges such as persistent power shortages, foreign currency shortages, and policy uncertainties.

The Chamber of Mines reported the mining industry generated $5.6 billion in 2022 compared to $5.1 billion in 2021, and it projected 10.4 percent sector growth in 2023.

Zwnews