Zimbabwe urges Gold miners to boost output to back new ZiG currency

Zimbabwe is urging its gold miners to significantly boost output to support the newly launched Zimbabwe Gold (ZiG) currency, which is anchored on the nation’s gold reserves. With a goal to increase gold production from 30.1 tons last year to 40 tons this year, the government is incentivizing both artisanal and large-scale miners to contribute. This push comes as part of Zimbabwe’s broader strategy to stabilize its economy and ensure the success of the ZiG, backed by 2.5 tons of gold and $100 million in reserves. This marks the country’s sixth attempt in 15 years to establish a functional local currency.

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By Godfrey Marawanyika

Zimbabwe has asked gold miners across the country to ramp up output to support the ZiG currency launched last month, according to Mines and Mining Development Minister Winston Chitando.

“This new currency is anchored on gold production, we have to determine ways to increase production,” Chitando said Monday in a meeting with miners in the capital, Harare.

Zimbabwe has been accumulating gold reserves at the central bank’s vaults to back the ZiG, short for Zimbabwe Gold. The ZiG is backed by 2.5 tons of gold and $100 million. It’s the nation’s sixth attempt to have a functioning local currency in 15 years.

Since late 2022 miners have been ordered to pay a part of their royalties to the state partly in commodity and cash, to help increase reserves.

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To help boost production, the government will encourage artisanal and small-scale miners to produce more gold with medium- and large-scale miners, Chitando said. “At this stage, production from medium- to large-scale miners for the first quarter was higher from same period last year,” said Chitando.

The southern African nation — which is endowed with vast mineral resources including platinum, lithium and diamonds — targets gold production this year of 40 tons up from 30.1 tons last year.