Zim likely to miss 28 t gold production target as small-scale miners struggle
The World Bank says Zimbabwe may miss its 2017 gold production target of 28 t because most small-scale producers remain vulnerable to the country’s harsh macroeconomic environment.
Zimbabwe’s macroeconomic environment has deteriorated since late last year, amid severe foreign exchange shortages.
The World Bank says in its latest forecast for the sector that, this year, Zimbabwe’s gold production will increase by only 10% to about 25.3 t.
“The mining sector is expected to continue growing, but it will remain vulnerable to the [prevailing] macroeconomic conditions. Gold production is
expected to increase by 10% and global gold prices are projected to remain broadly stable,” the Bretton Woods institution states.
The Zimbabwe government previously stated that small-scale miners were expected to lead an expected surge in gold production, which, it forecast, would reach 28 t this year.
In 2015, small-scale miners accounted for 36% of the country’s gold production, with the proportion rising to 40% in 2016 on the back of government cash incentives and a relaxation of legislative constraints.
Government is continuing to pay cash for gold deliveries. However, because they are not recognised as exporters, small-scale gold miners
do not qualify for any options to access cash from offshore sources.
“The gold producers are not legally regarded as exporters and cannot hold [foreign-currency- denominated] accounts, which leaves them
particularly exposed to the liquidity constraints in the country,” the World Bank report states.
After missing the 2016 small-scale mine gold production target of 10 t, the Reserve Bank of Zimbabwe’s gold buying subsidiary, Fidelity Printers & Refiners, unveiled a $40-million mine capitalisation loan facility. Of this amount, $29-million has already been disbursed. Collateral for the loans include livestock and a wide range of movable and immovable property.
Comments
Latest Multimedia
Latest News
Showroom
At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
