Small-Scale Miners Drive Record Gold Deliveries to Zimbabwe's State Refinery, but the Price Gap Still Tempts Leakage

• Record gold buying: Fidelity's purchases rose 20.68% year on year to 5.11 tonnes in August, bringing the year's total to 31.17 tonnes.

• Small miners lead: small-scale miners supplied 22.38 tonnes, nearly 72%, including a 2026 monthly high of about 3.98 tonnes in August.

• The target: Fidelity projects 50 tonnes for 2026; state media and industry cite 55 tonnes. August's pace points to about 51 tonnes.

• The price gap: on 18 September, Fidelity's top rate was US$4,116.86 an ounce, about 5–6% below international spot, an incentive for informal sales.

• The policy U-turn: a 90:10 US dollar/ZiG payment rule for small-scale miners was introduced on 27 February and suspended on 24 March, after March deliveries fell 30.8%.

• MMCZ: nine-month sales reached US$4.74 billion (+101.8%), led by lithium at US$2.16 billion, although most came from concentrate that will be banned in January 2027.

• Watch: September gold figures, and whether the 10% ZiG rule returns.

Zimbabwe channels almost all of its mineral exports through two state-designated institutions, each with a statutory monopoly over its segment of the market.

Why it matters. As the only legal buyer, Fidelity is both a market and an instrument of policy. The gold it buys supplies the Reserve Bank's reserves, which back the ZiG. Its buying price, and the currency in which it pays, decide whether miners sell into the formal system or to informal buyers who smuggle gold across borders.

A formalisation drive. Fidelity's general manager, Peter Magaramombe, has made formalising the artisanal and small-scale sector a priority, saying the refinery needs to know where gold is coming from and where it is going. Fidelity refines all gold delivered to it to between 99.5% and 99.99% purity, and is positioning itself as a regional precious-metals hub.

August 2026. Gold deliveries to Fidelity rose 20.68% year on year to 5.11 tonnes in August, from 4.24 tonnes in August 2025, according to figures released on 14 September. Small-scale miners delivered a year-to-date monthly high of about 3.98 tonnes, roughly three-quarters of the month's total.

Year to date. Cumulative purchases reached 31.17 tonnes in the eight months to August:

The quarterly path:

The targets. Two figures circulate, and they come from different sources:

• 50 tonnes: Fidelity's own 2026 projection, an 11% increase on the 45 tonnes expected in 2025, assuming an average gold price of US$4,600 an ounce. The government is targeting at least 50 tonnes.

• 55 tonnes: the annual target cited in state media and industry reporting.

If deliveries held at August's pace of about 5.1 tonnes a month for the rest of the year, 2026 would close at roughly 51 tonnes. That puts 50 tonnes within reach, while 55 tonnes would need an average of about 6 tonnes a month from September. The Zimbabwe Mining Federation separately targets 45 tonnes from the small-scale sector alone.

Why small miners dominate. Small-scale and artisanal miners have become the backbone of Zimbabwe's formal gold supply, accounting for more than 70% of deliveries. That makes Fidelity's relationship with them, through price, payment currency and speed of payment, the single most important factor in how much gold enters the formal system.

Fidelity pays below the world price

Fidelity publishes daily buying prices by gold category. On 18 September 2026:

The international spot price that day was around US$4,380 an ounce; Tanzania's Mining Commission, for example, quoted US$4,383.10. Fidelity's best rate was therefore about 5–6% below spot, depending on the reference price used, with lower grades further below.

Why the gap matters. Some discount is normal: it reflects refining, assay, transport and handling. But every percentage point between Fidelity's price and what an informal buyer can offer, especially across a border, is an incentive to smuggle. With small-scale miners supplying more than 70% of formal deliveries, the size of that gap directly shapes how much gold Zimbabwe captures.

The 90/10 currency rule: introduced and suspended within a month

What the RBZ was trying to do. Governor John Mushayavanhu explained that large-scale miners retain 70% of proceeds in foreign currency, while small-scale miners kept 100%. The authorities had seen arbitrage: large-scale gold being marketed through small-scale channels to avoid the surrender requirement. The 10% rule was meant to close that gap.

What the episode shows. The state buyer's position is fragile. A modest change in payment terms, 10% in a local currency that many miners could not easily use for imported inputs, coincided with a sharp drop in deliveries within weeks. The RBZ has signalled that the 90:10 framework is suspended, not abandoned, and will be reviewed over time.

The second state channel, MMCZ, markets every mineral except gold and silver. Its latest figures, presented at a lithium media workshop in early October, show the non-gold basket growing even faster than gold.

Nine months to September 2026:

By mineral:

What drives it. MMCZ attributes the surge to higher international prices, increased beneficiation, higher production, new markets and efforts to curb mineral leakages. General manager Dr Nomusa Moyo credited government-led beneficiation, pointing to the US$190.52 million from lithium sulphate as evidence that further processing is beginning to contribute.

The caveat. Most of lithium's growth still came from spodumene concentrate, the product that will be banned from January 2027. Part of the surge may reflect producers racing to export concentrate before the deadline. The real test of the beneficiation policy comes in 2027, when concentrate sales must give way to sulphate.

1. State marketing monopolies

Zimbabwe's model, with a single state buyer for gold and a single state marketer for other minerals, gives the state control over the flow of foreign currency and mineral reserves. In trade-law terms, both bodies operate like state trading enterprises. Under GATT Article XVII, such bodies may hold exclusive rights, but should make purchases and sales on commercial considerations and in a non-discriminatory way. The model's legitimacy at home depends on the same thing: miners must see the state channel as a fair market, not a tax collector.

2. The price gap as an implicit levy

Fidelity's discount to world prices, about 5–6% at the top grade on 18 September, partly reflects refining, assay and logistics. Any margin beyond those costs works like an implicit levy on miners. The economic and legal risk is that an implicit levy, unlike a statutory royalty, is not set by Parliament, varies daily, and is invisible in the fiscal accounts, yet it determines whether gold enters the formal system or is smuggled out.

3. Currency surrender and monetary policy

Foreign-currency retention and surrender rules are set by the Reserve Bank of Zimbabwe under the exchange control framework, not by statute for each sector. That gives the central bank flexibility, as the February introduction and March suspension of the 90:10 rule showed. It also gives miners little predictability. The RBZ's stated reason, stopping large-scale miners from routing gold through small-scale channels, is legitimate. But the rule's impact on unbanked artisanal miners, who could not easily use ZiG to buy imported inputs, shows the cost of applying formal-sector tools to an informal sector.

4. Formalisation and traceability

With more than 70% of gold coming from small-scale miners, formalisation, traceability and anti-corruption controls at Fidelity are central to credibility with international buyers and refiners, who increasingly require responsible-sourcing assurance. Fidelity's integrity workshops and formalisation push are steps in that direction. The more formalised the supply chain, the more Zimbabwe's gold can command full value in international markets.

5. MMCZ and beneficiation policy

MMCZ's figures show the tension at the heart of Zimbabwe's mineral policy: earnings are rising fastest from the product being phased out, lithium concentrate. MMCZ's role will shift in 2027, from marketing concentrate to marketing sulphate and other processed products, with export quotas and beneficiation rules shaping what it can sell.

Artisanal and small-scale gold miners

Today: they supply about 72% of formal gold and are paid 100% in US dollars, after the 90:10 rule was suspended in March. The risks: a return of the ZiG portion, which the RBZ has said is suspended, not abandoned; a price gap of about 5–6% at the top grade; and pressure to formalise. What to do: open and maintain bank accounts, including local-currency accounts, so a reintroduced rule does not block payment. Register formally and keep records of production and sales.

Large-scale gold producers

Today: they retain 70% of proceeds in US dollars, with 30% in ZiG. The RBZ's concern about large-scale gold being routed through small-scale channels means more scrutiny of supply chains. What to do: keep clear separation and documentation of own production, and avoid arrangements that could be read as arbitrage.

Fidelity Gold Refinery

The task: sustain record deliveries by keeping prices competitive, paying promptly and building traceability. The September figures, due in October, will show whether August's pace held.

Reserve Bank of Zimbabwe

The dilemma: it needs gold and foreign currency to back the ZiG and build reserves, but tighter surrender rules risk pushing gold into informal channels. Any reintroduction of the 10% ZiG portion will need banking access for miners in place first.

Lithium, PGM and chrome exporters

Today: all sales run through MMCZ, which reports record sales led by lithium. What to do: lithium producers should plan for the shift from concentrate to sulphate in MMCZ's marketing from January 2027. PGM and chrome exporters should track MMCZ's market outlook and any beneficiation requirements extending to their minerals.

International buyers and refiners

Rising formal gold flows and MMCZ's role offer a single, documented counterpart. Buyers will expect responsible-sourcing evidence, especially for gold from small-scale miners.

Lawyers and advisers

The work includes compliance with gold marketing and exchange-control rules, structuring offtake through MMCZ, export-retention planning for producers, and responsible-sourcing due diligence for small-scale gold supply chains.

Who buys gold in Zimbabwe? Fidelity Gold Refinery is the sole authorised buyer, refiner and exporter of gold. The Minerals Marketing Corporation of Zimbabwe markets all other minerals.

How much gold has Fidelity bought in 2026? 31.17 tonnes in the eight months to August, including 5.11 tonnes in August, up 20.68% year on year.

How much comes from small-scale miners? 22.38 tonnes, nearly 72% of the year-to-date total.

What is Zimbabwe's 2026 gold target? Fidelity projects 50 tonnes; state media and industry reports cite a 55-tonne target.

How are small-scale miners paid? In US dollars. A rule requiring 10% in ZiG was introduced in February 2026 and suspended in March.

What did MMCZ sell in 2026? US$4.74 billion in the nine months to September, up 101.8%, with lithium (US$2.16 billion) overtaking PGMs as the top earner.