THE Chamber of Mines of Zimbabwe (CoMZ) has revealed that the gold industry requires US$1 billion in capex to reach the government’s annual production target of 100 tonnes.
During the ongoing CoMZ annual conference currently underway in Victoria Falls, the chamber called for urgent reforms and significant investment in the country’s gold sector to meet the government’s ambitious target of producing 100 tonnes of the mineral annually.
According to the CoMZ, gold output rose to 38,5 tonnes in 2024, from a prior year comparative of 32,4 tonnes, making gold the leading contributor to mineral exports at 43%.
For this year, the government is hoping for 40 tonnes in gold output and has already initiated several incentives to encourage small-scale artisanal miners to increase production to meet its goal.
These efforts come amid increased government focus on mining as a strategic sector to drive economic growth and stabilise the local currency, which is partially backed by gold.
“To reach the ad-return target, the sector will require an estimated US$1 billion in both ramp-up and sustenance capital,” CoMZ president Thomas Gono said during the conference yesterday.
“As the Chamber of Mines was encouraged that delays in payments for gold deliveries are now a thing of the past, we commend Fidelity Gold Refinery for the tremendous effort done in ensuring the producers are paid timely. We need to applaud them.”
He added that much of Zimbabwe’s gold potential remained untapped due to underexploration.
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“We are confident that with increased investment in exploration, new deposits will be discovered, boosting gold output and elevating Zimbabwe’s global standing in gold production,” Gono said.
The chamber stressed that reaching the 100-tonne target would require more than ambition, which demands enabling policies and major investment.
These include ensuring uninterrupted electricity supply at competitive tariffs, particularly for small- and medium-scale miners who are often off-grid and lack access to dedicated power lines.
“Over 60% of gold output comes from the artisanal and small-scale mining sector, which continue to operate without reliable power,” Gono said.
“Imagine what the sector could achieve if adequately supported with power, productivity enhancements and funding.”
Limited foreign currency allocation for importing critical inputs was also cited as a key constraint, with Gono urging collective action to reduce operating costs in the sector.
“The gold sector, like the broader mining industry, operates in a high-cost environment,” he said.
“If prices soften, as they inevitably do, the sector could face severe headwinds.”
The sector now accounts for over half of formal mining employment and directly or indirectly supports more than 1,5 million people across the country.
Hence, CoMZ warned that key challenges, including erratic power supply, antiquated equipment and limited access to capital, continue to constrain small- and medium-scale producers, who are responsible for over 60% of the national gold output.
“The gold mining industry plays a critical role in Zimbabwe’s socio-economic development. It contributes over 30% of the mining sector’s GDP [gross domestic product],” Gono said.
“Its contribution to mineral exports has risen from 27% in 2020 to 43% in 2024, while the sector now employs 57% of the formal mining workforce.”
He also called for a restructured gold marketing framework that reflects the dominance of small-scale producers.
“A centralised system is often rigid and unresponsive to the sector’s dynamics. Gold markets must be brought closer to production centres,” Gono explained.
“Liberalising gold marketing and decriminalising gold possession will help formalise operations and allow the financial sector to develop gold-backed instruments for financing.”
Currently, many operators still rely on outdated machinery, compromising efficiency and cost-effectiveness.
“The gold industry faces both challenges and opportunities,” Gono said.
“It is our hope that this platform will generate robust proposals for consideration by policymakers as we strive to grow this vital sector.”
