Small miners continue to outshine corporates

ZIMBABWE’s gold mining industry is going through structural transformation, with artisanal and small-scale miners now dominating production, marking a significant transfer of wealth and control from a handful of large corporations.

Analysts consider the shift a key success in local empowerment.

It is similar to the tobacco sector, where production is now overwhelmingly dominated by an estimated 200 000 small-scale farmers following the Land Reform Programme, up from just 4 500 prior to this initiative.

During the 2024/2025 farming season, the farmers collectively pocketed over US$1 billion from 354 million kg of tobacco.

The emergence of artisanal and small-scale miners, estimated to be around one million, according to the Zimbabwe Miners Federations, has also fundamentally reshaped the industry.

The miners now contribute about 75 percent of national output, signifying a transfer of economic power and wealth.

Over the past few years, the contribution of small-scale miners to Zimbabwe’s gold production has increased dramatically.

Latest statistics from the Fidelity Gold Refinery show that total gold deliveries for the first nine months of 2025 jumped by 37 percent to 32,98 tonnes (t), compared to 24,02t in the same period last year.

Crucially, small-scale miners delivered 24,45t of that total through September, a massive 67 percent growth from the 14,6t produced in the corresponding period the previous year.

Interestingly, the deliveries from small miners this year are more than the cumulative output for the industry in the same period in 2024.

In contrast, deliveries from the large miners in the first nine months of 2025 fell to 8,54t from the 9,55t produced a year earlier.

The Government’s supportive policies, notably allowing small-scale miners to retain 100 percent of their foreign currency earnings, have been key in driving growth.

“The dominance of small-scale miners in gold output is not just an economic success story; it’s a fundamental restructuring of wealth distribution,” said economic analyst Mr Shingi Maune.

“It signifies a clear shift in control, moving the profits and the power of the golden resource from the hands of a few corporates into the hands of thousands of citizens, directly impacting grassroots livelihoods. This is the new face of economic empowerment.”

Even with record production levels, analysts still believe the upside potential of small-scale miners remains significant.

However, a major constraint is that most are still using rudimentary methods, which curtail maximisation of value extraction.

Realising full potential requires adequate financial support to acquire modern equipment that will further boost output.

Dr Langton Mabhanga, an economic analyst, said the gold sector’s success is generating vital trickle-down effects, leading to investments in diverse areas, including real estate, service stations, tourism, hospitality and housing.

“When these miners participate in other sectors, they effectively feed into the national GDP (gross domestic product) and create jobs, proving the wider economic benefits of this empowerment,” said Dr Mabhanga.

Same pattern

Apart from the gold sector, similar trends are being observed in the tobacco industry. Before the Land Reform Programme, production was heavily concentrated among roughly 4 500 commercial farmers, largely due to the pervasive perception that the crop was technically challenging for black people.

Today, the landscape has fundamentally changed. The sector is overwhelmingly dominated by about 200 000 small-scale indigenous producers, who are consistently breaking output records.

The expansion signifies a massive transfer of wealth and economic control in the tobacco sector from a small minority to a vastly larger base of the indigenous population.

“The gold and tobacco sectors now represent more than just economic shifts; they are powerful testaments to empowerment at scale,” added Mr Maune.

“These twin cases are typical successes of the empowerment stories, underscoring Government’s efforts to fundamentally restructure key industries, broaden economic participation and ensure wealth distribution directly benefits thousands of indigenous citizens, not just a handful of corporates.”

Regulatory oversight

Critics have, however, expressed the urgent need for regulatory enforcement, particularly in the gold sector, to safeguard the environment and also in observing occupational safety.

The boom in artisanal mining has often been associated with environmental degradation, including deforestation and river siltation, highlighting a critical gap between economic success and sustainable practices. The challenge for policymakers is now to ensure that the economic benefits realised by small-scale producers are not outweighed by long-term environmental damage.

“We still have gaps that we need to work on, including training on occupational safety mechanisms, mechanising the operations, formal registration of claims and environmental conservation and restoration or rehabilitation of mined areas to ensure sustainable mining,” added Dr Mabhanga.

He emphasised that empowerment without due consideration to the environment would not be sustainable. Sunday Mail