Gold deliveries up 37pc

Africa Moyo

Business Reporter

GOLD deliveries to Fidelity Printers and Refiners (FPR) climbed 37 percent to nearly 8,2 tonnes in the six months to June 30, 2015 from the first half of last year, buoyed by increased output from both large and small-scale miners.

FPR, a unit of the Reserve Bank of Zimbabwe, spent more than US$300 million on buying the yellow metal; and operations director Mr Fradreck Kunaka told The Sunday Mail Business that small-scale producers had leveraged on offshore funds to ramp up production.

He said deliveries in the first six months of 2015 were 8,181 tonnes, compared to 5,978 tonnes from January to June 2014.

“For small-scale mines, the growth was mainly attributed to ramp up of production by the top five producing mines.

“The top five mines have been able to raise offshore funds for capitalisation of operations as well as improve efficiencies.

“Primary (large-scale) producers’ deliveries increased by eight percent from 4,745 tonnes in H1 (first half), 2014 to 5,135 tonnes in the same period in 2015.

“The purchases of gold from producers amount to around US$294,6 million.

“We would like to assure miners that there are adequate funds to buy all gold they will bring to year end,” said Mr Kunaka.

Small-scale miners recorded a noticeable rise in deliveries from 1,23 tonnes in the first half of 2014 to 3,05 tonnes for the same period in 2015, which represents a 147 percent increase.

Last year, a small-scale miner based in Filabusi – ChiKhumbu Mine – produced 15kg of gold, representing five percent of total deliveries.

The surge in gold deliveries has been attributed to collaborative efforts by the Mines Ministry, the RBZ, FPR and the Zimbabwe Republic Police (Minerals and Border Control Unit) to monitor activities at custom milling facilities and elution plants.

Mr Kunaka said plugging leakages to South Africa had also assisted in ensuring most gold was sold on the formal market.

There are serious concerns of gold leakages, especially among small-scale miners who control over 370 custom milling plants across Zimbabwe.

Government has sourced US$100 million worth of equipment from China for small producers who sell their gold to Fidelity.

FPR says it is possible to dig more than 16 tonnes of gold – one tonne more than the target – by year end.

Last year, gold deliveries topped 13,9 tonnes, which was 20kg below target.

Metallon Gold, which operates five mines, was the best exporter in the gold category last year, accounting for three of the 10 tonnes produced by large-scale producers.