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85% of small-scale gold miners not registered
11 hrs ago |
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Zimbabwe could be losing billions of dollars annually as reports indicate that approximately 85% of artisanal and small-scale gold miners (ASM) are not registered.
The country has over 1 million ASM operators, many of whom are paid fully in foreign currency, allowing them to bypass the Reserve Bank of Zimbabwe's 30% surrender requirement. This practice undermines government efforts to encourage miners to deliver gold to Fidelity Gold Refinery (FGR), which aims to handle 40 tonnes this year amid a 40% year-to-date surge in gold prices.
Analysts forecast continued growth in Zimbabwe's gold sector in 2025, projecting output to reach 43.39 tonnes, up from 38.45 tonnes in 2024. However, with most ASM operators functioning outside legal frameworks, the sector's true potential remains uncertain.
Portfolio Committee on Mines and Mining Development chairperson Remigious Matangira reported to Parliament that the Zimbabwe Miners Federation (ZMF) confirmed over one million ASM operators, of which 85% are unregistered. "As a result, the majority of the ASMs were not operating within the ambit of the law," Matangira said.
To address this, the Ministry of Mines and Mining Development has developed an Artisanal and Small-scale Gold Mining Strategy, outlining principles for formalising and optimising the ASM sector to ensure sustainable livelihoods. However, implementation has been delayed due to financial and human capacity constraints.
Some miners deliberately avoid registration to access better forex through smuggling, where they are promptly paid for deliveries. Matangira explained that while Fidelity Gold remains the sole buyer under the Gold Trade Act, the government's "no questions asked" policy — introduced a decade ago — allows ASM operators to sell gold to FGR without conditions.
Despite these measures, enforcement continues, and some miners face arrest for illegal possession of gold under Section 3 of the Gold Trade Act.
The report highlights the urgent need to formalise the ASM sector to unlock Zimbabwe's full gold potential and curb revenue losses.
The country has over 1 million ASM operators, many of whom are paid fully in foreign currency, allowing them to bypass the Reserve Bank of Zimbabwe's 30% surrender requirement. This practice undermines government efforts to encourage miners to deliver gold to Fidelity Gold Refinery (FGR), which aims to handle 40 tonnes this year amid a 40% year-to-date surge in gold prices.
Analysts forecast continued growth in Zimbabwe's gold sector in 2025, projecting output to reach 43.39 tonnes, up from 38.45 tonnes in 2024. However, with most ASM operators functioning outside legal frameworks, the sector's true potential remains uncertain.
Portfolio Committee on Mines and Mining Development chairperson Remigious Matangira reported to Parliament that the Zimbabwe Miners Federation (ZMF) confirmed over one million ASM operators, of which 85% are unregistered. "As a result, the majority of the ASMs were not operating within the ambit of the law," Matangira said.
To address this, the Ministry of Mines and Mining Development has developed an Artisanal and Small-scale Gold Mining Strategy, outlining principles for formalising and optimising the ASM sector to ensure sustainable livelihoods. However, implementation has been delayed due to financial and human capacity constraints.
Some miners deliberately avoid registration to access better forex through smuggling, where they are promptly paid for deliveries. Matangira explained that while Fidelity Gold remains the sole buyer under the Gold Trade Act, the government's "no questions asked" policy — introduced a decade ago — allows ASM operators to sell gold to FGR without conditions.
Despite these measures, enforcement continues, and some miners face arrest for illegal possession of gold under Section 3 of the Gold Trade Act.
The report highlights the urgent need to formalise the ASM sector to unlock Zimbabwe's full gold potential and curb revenue losses.
Source - Newsday
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