Gold deliveries top 15 tonnes in nine months

Africa Moyo —
THE country’s gold deliveries rose 17,7 percent to 15,3 tonnes in the nine months to September compared to 13 tonnes a year ago as small-scale producers increased output, raising prospects that the targeted 24 tonnes production for 2016 will be met.

Crucially, deliveries in the review period are three tonnes shy of the total deliveries in 2015. The figures exclude production figures for platinum producers such as Mimosa, Unki and Zimplats. On average, the country is producing about five tonnes per quarter.

Fidelity Printers and Refiners (FPR) general manager Mr Fradreck Kunaka told The Sunday Mail Business last week that the gold-buying unit of the Reserve Bank of Zimbabwe (RBZ) spent more than US$592 million on gold purchases.

“The gold deliveries were split as follows — 8,8kgs from large-scale miners and 6,5kgs from the small-scale miners.

“The country is on course to meet the target of 24 tonnes as we have started seeing an upsurge in deliveries from small-scale miners, who contributed 51 percent of the 1,9kgs of gold delivered in September 2016. The trend is anticipated to continue in the fourth quarter of 2016,” said Mr Kunaka.

Small-scale miners, who delivered 3,1kgs in the first half, upped their deliveries by over 3,4kgs between July and September. Small-scale producers are now positioned for rich pickings as a 5 percent export incentive is accruing on all gold deliveries from May 2016.

Large-scale miners are, however, entitled to 2 percent for the deliveries. Through the facility, the RBZ is trying to stimulate production and increase exports.

FPR is ably assisted by the central bank to ensure that payments for deliveries are made on time in order to prevent leakages from the official system. Recently, FPR received US$20 million from the RBZ to support small-scale gold producers.

The fund is meant to ensure that producers are able to exploit gold resources that are 30 metres beneath the surface. It is believed that surface gold ores are rapidly depleting. But the loans are collaterised with plant assets, property or household effects, depending on the size of the loan.

“Miners who are interested in the facility can approach the FPR Gold Team to negotiate terms favourable to the miner depending on circumstances but within the broad terms and conditions being communicated to the miners,” said Mr Kunaka.

Government is understood to be working on modalities of ensuring that artisanal and small-scale miners are formalised in order to enable them to sell gold through formal markets.

FPR, however, believes that decriminalising gold possession will violate the World Gold Council and United Nations Responsible Gold Scheme guidelines that are designed to eliminate money laundering and financing terrorism.