Zimbabwe asks miners to ramp up gold output to support ZiG currency

Winston Chitando
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HARARE — Zimbabwe has called on gold miners nationwide to increase their output to support the newly launched ZiG currency, Mines and Mining Development Minister Winston Chitando announced on Monday.

“This new currency is anchored on gold production. We have to determine ways to increase production,” Chitando stated during a meeting with miners in Harare.

The ZiG, short for Zimbabwe Gold, was introduced last month and is backed by 2.5 tons of gold and $100 million. This initiative marks Zimbabwe’s sixth attempt to establish a stable local currency in the past 15 years. To support the ZiG, the central bank has been accumulating gold reserves.

Since late 2022, miners have been required to pay a portion of their royalties to the state in both commodity and cash, a move aimed at boosting the country’s gold reserves.

Chitando emphasized the government’s plan to encourage increased production from both artisanal and small-scale miners, in addition to medium- and large-scale mining operations. “At this stage, production from medium- to large-scale miners for the first quarter was higher compared to the same period last year,” he noted.

Zimbabwe, rich in minerals such as platinum, lithium, and diamonds, aims to increase its gold production to 40 tons this year, up from 30.1 tons last year.