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Business Reporter
ZIMBABWE’s gold deliveries jumped 34,2 percent to 13,211 kilogrammes in the eight months to September compared to the same period last year, driven by a strong contribution from small scale miners.
According to the Zimbabwe Economic Policy Analysis and Research Unit, economic barometer volume 18, deliver by primary producers rose 8 percent to 8,027 percent over the same period in 2014.
Small-scale gold miners registered an impressive 114 percent increase in deliveries to 5 183kg, translating to 28,2 percent of deliveries since January. The out-turn was 3,7 percent better than the same period last year.
“The trend is expected to continue, given that royalties for small-scale gold miners with output not exceeding 0,5kg per month have been reviewed downwards to 1 percent from 3 percent,” ZEPARU said.
Small-scale miners have increased annual gold deliveries following policy position by Government to decriminalise their activities and the reduction of royalties paid to Government by the artisanal miners.
Deliveries this year represent 75,5 percent of the 17,5 tonnes target for 2015 with likelihood high the December 2015 target will be met. However, the target falls short of the 27 000kg at peak of production in 1999. Current production sets Zimbabwe well for readmission to London Bullion Market Association. The country applied for readmission following de-registration in 2008 when output fell below required level.
Minimum annual gold production level of 10 tonnes is a precondition to retain membership of the world bullion trade association.
Cumulative mineral earnings, excluding diamonds, for the nine months to September this year amounted to $1,26 billion, reflecting an 11 percent decrease compared to the same period last year.
Gold was the biggest contributor to total revenue, accounting for 42,1 percent while platinum, palladium and nickel contributed 22,7 percent, 11,8 percent and 8,9 percent of the total mineral earnings respectively. The four minerals, combined, made 85 percent of the earnings. ZEPARU said the decline in mineral production was attributable to the general decline in commodity prices on the international market.
“This calls for Government to continue with the beneficiation and value addition efforts to further develop downstream industries,” ZEPARU said.
“This would enable the country to reduce exposure to volatile prices of primary commodities, determined on global markets.”
The economic research institution said that Zimbabwe was a small player on the global commodities market, hence it cannot influence prices.
Online Reporter