Online Reporter
Business Reporter
ZIMBABWE’s gold production recorded a 36,4 percent surge in the second quarter of 2025, primarily driven by a robust output from small-scale miners.
According to the latest data from Fidelity Gold Refinery, total gold output climbed to 11,6 tonnes in the second quarter, a substantial increase from the approximately 8,5 tonnes produced in the first quarter.
The performance brings the cumulative gold production for the year to just over 20 tonnes.
Small-scale artisanal miners continued their dominance in the sector, contributing a remarkable 8,79 tonnes during the second quarter, up from 5,77 tonnes in the preceding quarter.
Large-scale mining operations also saw a modest increase in their contribution, yielding 2,81 tonnes in the second quarter compared to 2,72 tonnes in the first quarter.
Small-scale or “secondary” gold producers continue to be the backbone of Zimbabwe’s gold output, significantly outpacing the contributions of larger, established “primary” mining companies.
Primary producers, typically characterised by substantial capital investment and formalised operations, still contribute significantly to the overall gold deliveries to Fidelity Gold Refinery (FGR), the country’s sole legal gold buyer.
However, their output is consistently lower than that of small-scale miners.
Secondary producers, who often operate with less capital and more rudimentary methods, have become the principal drivers of Zimbabwe’s gold production.
Their sustained high contribution can be attributed to several factors, namely an increase in the number of small-scale miners actively involved, improved organisation within the artisanal and small-scale mining (ASM) sector, and concerted Government initiatives aimed at formalising and supporting their operations.
Zimbabwe’s gold exports increased by 24 percent during the first five months of the year to US$748 million from US$599,2 million in the same period last year, according to the Reserve Bank of Zimbabwe (RBZ).
The monthly breakdown for 2025 shows strong performance, with January at US$123,1 million against US$112 million recorded during the same period last year. February saw US$117 million in exports versus US$109 million the prior year. March figures soared to US$155,6 million, up from US$82,2 million.
April’s exports reached US$183,3 million from US$102,6 million in the comparative prior year period. May, however, recorded a slight decrease at US$168,7 million compared to US$193,5 million in 2024.
The US$148,8 million increase year-on-year underscores the growing contribution of the gold sector to Zimbabwe’s economy.
Gold is the country’s largest export commodity and last year, bullion worth US$1,52 billion was exported.
The gold sector is currently experiencing a significant boon from the ongoing surge in global gold prices.
This comes as the exports of precious metal climbed by nearly 25 percent in the first half of 2025, building on a record-setting rally from the previous year.
The robust global performance of gold is largely attributed to a potent combination of heightened policy uncertainty and intensifying geopolitical tensions worldwide.
These factors have solidified gold’s traditional role as a safe-haven asset, driving increased investment demand. Notably, the first quarter of 2025 saw the highest inflows into gold exchange-traded funds (ETFs) since 2022, signalling renewed investor confidence and a flight to safety.
Furthermore, continued strong purchases by central banks are providing additional support to gold’s upward trajectory, reflecting ongoing reserve-management strategies by nations seeking to diversify their assets and hedge against economic instability.
Analysts widely anticipate this strong demand to persist in the near term, with global uncertainty and geopolitical risks remaining key drivers.
Projections indicate that gold prices are set to rise by approximately 35 percent year-on-year in 2025.
Could there be an explanation for the May downturn?