Gold deliveries leap to 56%

Gold deliveries leap to 56%
Published: 21 February 2018
ZIMBABWE'S gold deliveries rose by 56.4 percent to 2 558.9 kilogrammes last month compared to 1 636.5 kg during the same period last year, official figures show.

Last year, small-scale gold producers attributed subdued output of the yellow metal in January to water clogging of the mine shafts following incessant rains received in the last season. Small-scale miners last month improved their output to 1 399.1 kg from 713.5 kg in January last year. Primary producers also increased output to 1 159.8 kg in January 2017 from 923 kg during the comparable period last year.
 
Latest figures from the country sole gold buyer, Fidelity Printers and Refiners, also show that about $110 million was paid to the producers in January this year compared to $62.8 million in January 2017. The average gold price per kg last month was $42 814 compared to $38 344.5.

Gold producers last year delivered 24.8 tonnes to Fidelity Printers and Refiners compared to 21.4 tonnes in the prior year. In 2017, the small-scale mining sector outshined large-scale gold producers after contributing 53 percent of the total deliveries. In this light, the Reserve Bank of Zimbabwe in the 2018 monetary policy statement increased the gold support facility to $150 million from $74 million that had been disbursed by December 31 last year. FPR is the sole gold buying unit of the RBZ.

In the 2018 monetary policy statement, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya noted that tobacco and gold exports contribute significantly to the country's export receipts.

"The tobacco and gold sectors, if sustainably and adequately funded, have the potential to generate more foreign currency for the country," he said.

Dr Mangudya indicated that export receipts from the gold sector for the period May to December 2017 were $1.3 million while incentive amounts for the period stood at $59.3 million.

Against this background, the RBZ boss announced that as part of efforts to finance gold production by small-scale miners, the monetary authority was this year introducing the Diaspora Gold Production Financing Bond to Zimbabweans abroad.

"Coupon payments will be made on monthly basis as gold is sold to Fidelity Printers and Refiners."

Dr Mangudya also said:

"To enhance the gold industry's contribution to value addition objective, which is in sync with the Government's policy on mineral beneficiation, priority shall be given to export-oriented jewellery production with the jewellery manufacturer retaining 100 percent of the foreign currency generated from the value added component for use in their business operations."

Dr Mangudya said approved jewellery manufacturers to meet local demand shall be availed not more than three kg per quarter through Fidelity Printers and Refiners under a properly monitored arrangement to guard against abuse of such a facility.

- chronicle
Tags: Gold,

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