Power and currency woes dent Zimbabwe’s gold production, drops by 15%

Cape Town – Official data released on Monday revealed that Zimbabwe’s gold production in 2023 amounted to 30 metric tons, marking a 15% decrease compared to the previous year, a report says.

The decline is attributed to challenges stemming from electricity shortages and currency volatility, significantly impacting the country’s gold output.

According to Reuters the country faced challenges such as being under-explored, difficulty in raising capital for mines, and concerns over government policies and property rights.

Despite a recovery in recent years, reaching 35 tons in 2022, Zimbabwe lags behind its potential.

Zimbabwe’s gold deliveries down 15% in 2023 as costs and currency policy undermine producers. Details here ⤵️ https://t.co/6vY1eYctu5

— newZWire (@newswireZW) January 8, 2024

The 2023 gold output of 30.11 tons missed the government’s target of 40 tons.

Zimbabwe has a long history of gold mining, and it remains one of the country’s primary economic activities. The sector has faced various challenges, including fluctuating gold prices, policy uncertainties, and infrastructure constraints. Despite these challenges, gold mining continues to play a crucial role in the country’s economy.

Zimbabwe has several gold mines, and both large-scale mining operations and small-scale artisanal miners contribute to the gold production. The government has implemented policies to encourage investment in the sector and improve its overall performance. These policies include efforts to streamline regulatory processes and attract foreign investment.