RBZ unbundles gold buying company

Judith Phiri, Sunday News Reporter
The Reserve Bank of Zimbabwe (RBZ) has resolved to dispose of Tuli Coal (Private) Limited to Government and to unbundle Fidelity Printers and Refiners (Private) Limited (FPR) into two business entities.

In a statement, RBZ Governor Dr John Mangudya said they would like to inform the public about the unbundling and divestiture of the businesses.

“The Reserve Bank of Zimbabwe (the Bank) would like to inform members of the public that at its meeting on 9 December 2020, the Bank’s Board of Directors resolved to dispose of Tuli Coal (Private) Limited to Government and to unbundle Fidelity Printers and Refiners (Private) Limited (FPR) into two business entities, that is (i) gold refining and (ii) printing and minting,” read part of the statement.

He added that valuations of the Bank subsidiaries were undertaken by independent valuers. Hence, the disposal of Tuli Coal (Private) Limited will fulfill the Bank’s long-held desire to sell its entire equity in the asset, which is capable of predominantly producing thermal coal, for the benefit of the economy.

Dr Mangudya added: “The unbundling of FPR is designed to partially privatise the gold refining business by allowing private players to acquire a stake therein and in the process secure and endear the private sector’s interests in the production and marketing of gold in Zimbabwe.”

He also noted that by being part of the decision-making process on gold trading, it is expected that the gold producers’ compliance levels in the trading of gold will significantly increase.

Moreover, accordingly, the Bank shall retain 40 percent shareholding in FPR and dispose of 60 percent shareholding to both the large-scale and small-scale gold producers.

Dr Mangudya also noted that they will offer percentages of shareholding in FPR to the large-scale gold producers, to major FPR gold buying agents and to the small-scale producers through their representative bodies.“Using a three-year average delivery of gold to FPR, the Bank will offer 50 percent shareholding in FPR to the large-scale gold producers, 3 percent to major FPR gold buying agents and the balance of 7 percent to the small-scale producers through their representative bodies.

The Bank shall continue to have 100 percent equity in the printing and minting business for national security reasons,” he said.