ZMF signs gold-for-machinery deal

Gold production by small-scale miners surged to 489,5 kilogrammes in December 2011 compared to 348,5 the previous month.
ZMF president Mr Trainos Nkomo said selling gold to South Africa meant high returns for the miners.
“It is a win-win situation where we get machinery and capital while the South African firm gets gold. Our members will get good prices and this will go a long way in boosting local production since mining is capital intensive.
“We are just activating a deal that existed before. The initial contract expired three years ago when the country went through a bad patch,” he said.
Mr Nkomo said the South African firm was a reputable gold refiner in that country and in India.
“The firm has also agreed to advance machinery on credit to the federation,” he said.
Mr Nkomo would not be drawn to disclose the name of the South African company and the nitty-gritties of the deal.
He said the federation would continue to sell some gold to Fidelity Printers and Refiners.
In the initial stage, Mr Nkomo said, ZMF members would export 40 kilogrammes of gold to the company although the quantity could increase.
“By year end we hope to export more than a tonne of gold,” he said.
“The country only has two sets of miners, that is small and large miners but the deal will see the birth of middle or medium miners, which is the missing link today.” – New Ziana.