Zimbabwe’s gold producers say record international gold prices are helping sustain the sector, but warn that underlying challenges could threaten future growth if prices retreat.
Speaking at the Chamber of Mines Annual Conference, Gold Producers Association president Qubeka Nkomo said many mining companies are struggling with foreign currency shortages, delayed payments and limited access to capital required for expansion projects.
Nkomo said delays in receiving the ZiG equivalent of the surrender portion of export proceeds are creating operational and cash flow challenges for producers.
He also highlighted high electricity tariffs, expensive financing and growing fiscal charges as major factors increasing the cost of doing business for gold miners.
According to Nkomo, many producers are unable to access offshore funding and are relying largely on internally generated funds to finance expansion, limiting their ability to increase production while gold prices remain favourable.
He warned that any significant decline in global gold prices could expose the vulnerability of some operations due to the sector’s high cost structure.
Despite the challenges, Nkomo said prospects for Zimbabwe’s gold industry remain positive, provided authorities address key growth constraints and create a more competitive operating environment capable of attracting investment.
Gold remains Zimbabwe’s largest foreign currency earner, with the country targeting 50 tonnes of production this year.
