Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
THE Portfolio Committee on Mines and Mining Development has raised alarm over disturbing practices by some large-scale miners who are reportedly manipulating payment models that were specifically designed to support artisanal and small-scale mining (ASM) operations.
The committee noted that while ASM producers continue to deliver the bulk of Zimbabwe’s gold, certain large-scale miners are exploiting incentives such as the five percent tax rebate and 100 percent foreign currency payments for gold deliveries, tilting the playing field and undermining policy objectives.
According to the report of the Portfolio Committee on Mines and Mining Development on the inquiry into responsible mining by the ASM sector in Zimbabwe, Fidelity Gold statistics confirm that small-scale gold miners have consistently outperformed their large-scale counterparts over the past five years, cementing their place as the backbone of the nation’s gold economy.
Between 2020 and 2024, the ASM sector widened its dominance. In 2020, small-scale miners delivered 15 tonnes against 10,5 tonnes from large-scale producers, representing 59 percent of total output.
The upward trajectory continued in 2021 with 16,5 tonnes delivered against 11 tonnes in 2022, with 17,8 tonnes against 11,8 tonnes and in 2023 with 18,6 tonnes compared to 11,4 tonnes.
The most dramatic gap was recorded in 2024 when small-scale producers delivered an impressive 23,7 tonnes, almost double the 12,7 tonnes from large-scale operators, accounting for nearly two-thirds of the country’s total 36,4 tonnes that year.
“In the first quarter of 2025, according to Fidelity Gold, the large-scale producers had an output of 2,7 tonnes, while the small-scale producers’ output stood at 5,7 tonnes,” the report presented by the chairman of the Parliamentary Portfolio Committee on Mines and Mining Development, Remigious Toendepi Matangira, noted.
The committee attributed this performance to policies deliberately crafted to boost ASM, including tax incentives, flexible payment systems, and the “no questions asked” policy for gold delivered to Fidelity Refiners, a move aimed at curbing smuggling and leakages.
“On payment models, the ASM sector was paid 100 percent in foreign currency for deliveries made, whereas large-scale producers were being paid a portion in local currency, which is subject to volatility.
“Secondly, in the last few years, a five percent tax incentive was given to gold buyers and to the ASM sector for deliveries of 20kgs of gold or more to Fidelity Refiners.”
To encourage broader participation, in January 2025, the minimum threshold for incentive qualification was lowered from 20kgs to 500 grams, bringing more small-scale miners into the formal gold trade.
The committee, however, warned of an emerging distortion in the sector.
“Whilst most of the ASM sector is informalised, the Government introduced the policy of “no questions asked”, for all gold delivered to Fidelity Refiners. This is designed to curb smuggling and gold leakages from the ASM sector. As a result, more output has been realised from the ASM sector through the formal channels.
“However, a worrying trend has emerged, where some large-scale producers were finding ways to sell their gold through small-scale miners. This practice undermines the initiatives and support specifically designed for small-scale miners.”
The Zimbabwe Miners Federation (ZMF) told the Committee that large-scale miners were exploiting the very models meant to uplift artisanal miners.
“These large-scale miners were exploiting these models to funnel gold deliveries to Fidelity, which goes against the intended purpose of these incentives. As a result, there is a significant imbalance in gold production, with the ASM sector producing more gold than the large-scale miners.”
The committee further observed that loopholes thrive in the absence of a robust legal framework governing ASM. “The lack of regulation not only undermines the integrity of the ASM sector but also poses challenges for equitable resource management within the mining industry,” the report stated.
To safeguard the sector, the committee recommended a review of the Gold Trade Act to empower Fidelity Gold as the sole buyer of gold in Zimbabwe and the new Bill is expected to be tabled in Parliament in November.
It further recommended Treasury to avail resources for the Ministry of Mines to implement the ASM Gold Strategy by the end of this month including formalisation, safe mining practices, clearing licensing backlogs and the introduction of tax incentives for ASM producers who practice responsible and sustainable mining.
Analysts say the production figures highlight the ASM sector’s resilience, its ability to adapt to market conditions, and its critical role in sustaining rural livelihoods and employment.
The Committee concluded that while the ASM sector has become the backbone of Zimbabwe’s gold production, unchecked exploitation of incentives by some large-scale miners risks derailing efforts to promote responsible mining.
The inquiry sought to evaluate ASM’s contribution to the mining economy, identify existing legal and policy gaps, and propose measures to ensure responsible gold sourcing.
It conducted a workshop on responsible mining that was attended by the Ministry of Mines and Mining Development, Fidelity Gold and Refiners, Zimbabwe Miners Federation (ZMF), the Chamber of Mines, Environmental Management Agency and Civil Society Organisations.
Fact-finding visits to the eight mining provinces of the country that include Matabeleland South, Matabeleland North, Midlands, Masvingo, Mashonaland West, Mashonaland East, Mashonaland West and Manicaland were carried out.
