Zimbabwe's Monthly Gold Deliveries Expected To Decrease By Almost Half
Zimbabwe’s monthly gold deliveries are expected to decrease by almost half of the usual two tonnes due to protests by artisanal and small-scale miners against the government’s recent policy change. Previously, these miners were receiving 100% of their payments in hard currency, but now they are required to receive 75% in US dollars and the remaining amount in Zimbabwe’s currency.
The policy change is believed to be an attempt by the government to raise civil service bonuses. Artisanal and small-scale miners, also known as Makorokoza/Amakorokoza, contribute about 60% of the country’s gold output.
According to sources at the government-owned Fidelity Gold Refinery, gold deliveries have been slow and have not exceeded one tonne with only 14 days left in the month.
Although the country has been facing economic difficulties for the past decade, the payment of bonuses to civil servants usually takes place in November. An anonymous source told NewZimbabwe:
The situation is not looking good, deliveries have considerably gone down and this will definitely have an impact on the national purse.
We hear this was meant to raise money to pay civil servants’ bonuses but from what we are seeing the plan is backfiring. Artisanal miners have virtually stopped deliveries because they feel government should have communicated or discussed with them.
Most of them rarely use the local currency, they do not have bank accounts or use RTGS transfer platforms, they only know US dollars.
During a parliamentary session, Mines Deputy Minister Polite Kambamura addressed concerns regarding the payment of artisanal miners. He stated that mobile gold buying units have been introduced by Fidelity Printers to enable miners in remote areas to sell their gold legally. Moreover, licenses are being issued to private buyers to purchase gold directly from mining areas. However, artisanal miners claim that they have not received the promised 25% payment.
Gold is one of the major sources of foreign currency for Zimbabwe. Usually, mining activities slow down during the first and fourth quarters of the year because of rainy seasons. The rain increases the risk of landslides and mine collapses, which can be dangerous for miners.
