Zimbabwe is urging gold miners throughout the country to increase output to support the recently launched ZiG currency.
This is 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 on Monday during a meeting with miners in the Zimbabwean capital of Harare.
Zimbabwe has been amassing gold reserves in the central bank's vaults to support Zimbabwe Gold, known as ZiG.
This currency is backed by 2.5 tons of gold and $100 million. It represents the country's sixth effort in 15 years to establish a stable local currency, Bloomberg reports.
Since late 2022, miners have been required to pay a portion of their royalties to the state partly in commodities and cash, in order to help boost reserves.
To help boost production, the government will encourage artisanal and small-scale miners to collaborate with medium- and large-scale miners to produce more gold, the Mines and Mining Development Minister stated.
“At this stage, production from medium- to large-scale miners for the first quarter was higher from same period last year,” Chitando added.
In addition, the minister stressed the need to ensure that gold is delivered through the proper channels and that all mining activities are conducted responsibly and sustainably, in compliance with the country's laws.
The southern African nation, which is rich in mineral resources such as platinum, lithium, and diamonds, aims to increase gold production to 40 tons this year, a rise from 30.1 tons in 2023.
The ZiG began trading on 8th April, replacing the old Zimbabwean Dollar, which had been ravaged by inflation.