Mining industry on course to achieve its 2023 milestone

By Davidson Vandira

THE gold sector continues to be the torch bearer in the mining industry after recording an unprecedented increase in output in the first two months of 2022, with small scale miners dominating the show.

Zimbabwe has registered a more than 100 per cent increase in gold production to 5.5 tonnes in the first two months of this year, compared to 2.2 tonnes realised during the same period last year

The massive growth of the yellow metal can be attributed to the Reserve Bank of Zimbabwe’s upward review of foreign currency retention thresholds to 100 per cent which seems to have dealt decisively with side marketing and smuggling of the precious mineral.

The decriminalisation of small scale miners’ activities has also had a positive impact as their production levels are ever-increasing, feeding well into the 40 tonnes target for this year.

Economists are optimistic that the country is well poised to attain its mining vision if the trajectory continues, especially with the current high international commodity prices as a stimulant.

“The gold statistics for the two months January and February are a clear testimony to Zimbabwe’s potential in the mining sector provided there is a proper policy framework like the incentive scheme which has turned things around,” said a Development Economist, Mr Paison Tazvivinga.

“Gold production is central to the mining industry and over the past years we have witnessed a slump in production levels, however, the first two months of this year have given us reason to believe again and we call authorities to continue putting pro production policies,” noted an Economic Analyst, Mr Kudakwashe Mugova.

The mining sector’s performance is part of Zimbabwe’s grand plan in the attainment of sustainable economic growth as spelt out in the National Development Strategy One.