Zimbabwe’s mining companies are optimistic they will surpass the 42 tonnes gold target this year on the back of improved power supply, despite a decline in deliveries to Fidelity Gold Refinery (FGR) in the first half of this year.

The miners delivered 14.18 tonnes to FGR  in the first six months of the year, a 11% decline from 15.97% tonnes achieved in the prior comparative period.

The Chamber of Mines of Zimbabwe CEO, Isaac Kwesu told Business Times that the target was achievable on the back of power stability

“We anticipate that with the coming in of Hwange Unit 7 and 8, the mining firms will cover lost ground to achieve the annual target,” Kwesu said.

He added: “It is our hope that the second half will outperform the first half given power supply stability.

“Our thinking is that miners would want to cover lost ground and ramp up production boosted by improved power supply.”

Kwesu said first half gold output mainly suffered due to power outages.

FGR general manager Peter Magaramombe said they expect an increase in output due to improvement in power supplies.

“We are still gathering information whether the miners could reach the target or not but with power stability in place and more mines reopening, we expect an increase in output,” Magaramombe said.

Due to a decline in deliveries, revenue from gold exports fell 16% to US$882.66m in the first half of this year from US$1.047bn reported in the same period last year.

In the most recent state of the mining survey, mining executives identified power outages, high costs, a lack of foreign currency, a lack of capital, and outdated machinery and equipment as the main production barriers.

Taxes and other financial obligations were another factor that miners predicted would hurt mining performance in 2023.

The majority of mining executives predict that the tax system will get worse in 2023 due to higher royalties and other fees as well as the potential for lingering problematic tax issues.

They are also anticipating   foreign currency shortages to worsen in 2023.

The majority of respondents said they had trouble getting enough foreign currency to cover their operations and predicted that the situation would be difficult in 2023.

Zimbabwe’s mining companies are optimistic they will surpass the 42 tonnes gold target this year on the back of improved power supply, despite a decline in deliveries to Fidelity Gold Refinery (FGR) in the first half of this year.

The miners delivered 14.18 tonnes to FGR  in the first six months of the year, a 11% decline from 15.97% tonnes achieved in the prior comparative period.

The Chamber of Mines of Zimbabwe CEO, Isaac Kwesu told Business Times that the target was achievable on the back of power stability

“We anticipate that with the coming in of Hwange Unit 7 and 8, the mining firms will cover lost ground to achieve the annual target,” Kwesu said.

He added: “It is our hope that the second half will outperform the first half given power supply stability.

“Our thinking is that miners would want to cover lost ground and ramp up production boosted by improved power supply.”

Kwesu said first half gold output mainly suffered due to power outages.

FGR general manager Peter Magaramombe said they expect an increase in output due to improvement in power supplies.

“We are still gathering information whether the miners could reach the target or not but with power stability in place and more mines reopening, we expect an increase in output,” Magaramombe said.

Due to a decline in deliveries, revenue from gold exports fell 16% to US$882.66m in the first half of this year from US$1.047bn reported in the same period last year.

In the most recent state of the mining survey, mining executives identified power outages, high costs, a lack of foreign currency, a lack of capital, and outdated machinery and equipment as the main production barriers.

Taxes and other financial obligations were another factor that miners predicted would hurt mining performance in 2023.

The majority of mining executives predict that the tax system will get worse in 2023 due to higher royalties and other fees as well as the potential for lingering problematic tax issues.

They are also anticipating   foreign currency shortages to worsen in 2023.

The majority of respondents said they had trouble getting enough foreign currency to cover their operations and predicted that the situation would be difficult in 2023.