Fidelity must charge competitive gold prices

Published: 24 July 2014

GOVERNMENT will soon ensure that Fidelity Printers and Refiners charges competitive prices on all gold delivered to the buyer to curb smuggling of the mineral, a Cabinet Minister has said.

In the 2014 national budget, Finance and Economic Development Minister Patrick Chinamasa said Fidelity Printers was reverting to be the sole buyer and exporter of gold produced in the country effective January.

Speaking during the 2014 Mine Entra Conference yesterday, Finance and Economic Development Deputy Minister Dr Samuel Undenge said Government through his ministry would ensure Fidelity buys gold at prevailing market rates.

"In terms of gold, we want Fidelity to charge competitive prices so that gold produced is sold at Fidelity. We want to stop the smuggling of gold. We want to ensure that gold is bought at Fidelity and at market prices, preferably London Metal Exchange," he said.

Undenge said the Zimbabwe Agenda for Sustainable Socio-economic Transformation (Zim-Asset) aims to achieve sustained development and social equality in communities.

In this light, his ministry was working towards taking measures that promote sustainable economic growth in different sectors including mining.

Recently, the Zimbabwe Artisanal and Small-Scale Mining Council expressed concern over gold buying price that Fidelity Refiners was offering.

The artisanal and small-scale miners' body said Fidelity Printers was buying gold at 11 percent lower than the international market price and this promotes smuggling of the mineral.

It said it was imperative for Government to ensure that Fidelity Printers buys gold at favourable rates to attract producers to deliver the yellow metal to Fidelity Printers.

The small-scale mining industry is critical to the country's economic development.

Gold output from small-scale miners has dwindled from 17,000 kilogrammes in 2004 to 957 kg last year due to a number of challenges facing the miners.
- BH24