Zimbabwe’s gold mining sector could fail to capitalize on record global prices due to limited access to capital and persistent structural constraints, Chamber of Mines President Thomas Gono warned today at the industry’s Annual General Meeting.
Gono said that while soaring gold prices present a valuable opportunity for economic gains, the sector remains stifled by inadequate foreign currency allocations for procuring critical production inputs. He noted that gold producers, like the broader mining industry, operate in a high-cost environment that demands urgent and collective efforts to bring down operational expenses.
“If prices soften, as they inevitably do, the sector may face severe challenges,” Gono said. “At present, the local gold industry operates below capacity, constrained by limited access to capital for both operations and expansion.”
He added that many gold producers continue to rely on outdated equipment, which significantly undermines efficiency and cost-effectiveness.
To achieve the government’s ambitious target of producing 100 tonnes of gold annually, Gono said the sector requires an estimated US$1 billion in both ramp-up and sustenance capital. Without that investment, Zimbabwe may not fully benefit from current favorable commodity prices.
Despite these challenges, Gono praised recent improvements in gold payment systems, saying delays in payments for gold deliveries are now a thing of the past. He commended Zimbabwe’s Gold Sector Risks Missing Out on Boom Without $1bn Capital Injection — Chamber of Mines President for ensuring producers are paid on time, calling it a vital step in restoring confidence and liquidity in the sector.
