ZIMBABWE has called on gold miners across the country to ramp up their output in support of the recently launched ZiG currency. Mines and Mining Development Minister Winston Chitando highlighted this initiative during a meeting with miners in Harare on Monday.
‘This new currency is anchored on gold production; we have to determine ways to increase production,’ Chitando stated. The ZiG, short for Zimbabwe Gold, is backed by 2.5 tonnes of gold and $100 million. This marks Zimbabwe’s sixth attempt to establish a stable local currency in the past 15 years.
To strengthen the reserves backing the ZiG, Zimbabwe has been accumulating gold at the central bank’s vaults. Since late 2022, miners have been mandated to pay a portion of their royalties in both commodity and cash, aiding in reserve accumulation.
To further boost gold production, the government plans to encourage both artisanal and small-scale miners to increase their output, alongside efforts from medium- and large-scale miners. ‘At this stage, production from medium- to large-scale miners for the first quarter was higher compared to the same period last year,’ Chitando noted.
Zimbabwe, a nation rich in mineral resources such as platinum, lithium, and diamonds, aims to raise its gold production target to 40 tonnes this year, up from 30.1 tonnes last year. This ambitious goal underscores the government’s commitment to leveraging its mineral wealth to stabilize and support its new currency.
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