• Zimbabwe’s gold deliveries fell 17.7% MoM to 2.56 tonnes in February 2024, driven by a 27.6% drop in small-scale miners’ output
  • Firm gold prices (~US$2,000/oz) failed to offset production declines
  • Large-scale miners saw marginal gains (928kg vs. 868kg)

                   

Harare- Zimbabwe's gold deliveries declined by 17.7% month-on-month in February 2024, falling to 2.56 tonnes from 3.1 tonnes in January. This marks the lowest monthly output in over six months since June 2024, driven primarily by a sharp drop in production from small-scale miners. 

Production from small-scale miners plummeted to 1,640 kg in February, down from 2,265 kg in January, a 27.6% decline.

The sector, which lacks sophisticated machinery to mitigate weather disruptions, was severely impacted by pronounced rainfall across the country.

Heavy rains flooded mining pits and disrupted operations, exacerbating challenges for artisanal miners who mostly rely on manual labour and basic tools. 

Price Incentives vs. Operational Constraints 

Gold prices remained firm in February, nearing US$2,000 per ounce, a level historically sufficient to incentivise production.

However, small-scale miners’ inability to drain waterlogged pits or deploy weather-resilient technologies offsets the price-driven motivation, highlighting systemic vulnerabilities in Zimbabwe’s artisanal mining infrastructure. 

Large-Scale Miners: Marginal Gains Amid Structural Issues

Large-scale producers reported a modest output increase to 928 kg in February, up from 868 kg in January.

However, this marginal improvement failed to offset broader sectoral declines.

RioZim, a key large-scale producer, continued to underperform due to prolonged operational inefficiencies and uncertainty linked to its ongoing sale process.

The company’s subpar output has dragged primary production for several months. 

Despite the February slump, the government maintains an ambitious 2025 gold production target of 40 tonnes, up from 36 tonnes in 2024, a record high driven by favourable prices and state-backed initiatives.

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