Gold de­liv­er­ies in­crease

Chronicle (Zimbabwe) - - Business -

GOLD de­liv­er­ies to Fi­delity Print­ers and Re­fin­ers in­creased 7,14 per­cent in July, 1 817kg from 1 695,9kg in the pre­vi­ous month.

Lat­est data for the seven months shows that gold pur­chases by FPR amounted to 11 444,69kg against the set full-year target of 24 000kg.

Gold de­liv­er­ies have be­gun ris­ing as the prices con­tinue to firm on the global mar­ket while ac­cord­ing to the Re­serve Bank of Zim­babwe there has been an in­crease mainly from small-scale min­ers fol­low­ing the im­ple­men­ta­tion of the 5 per­cent ex­port in­cen­tive scheme in May this year.

Of the gold de­liv­er­ies, 6 686,59kg came from pri­mary pro­duc­ers while small-scale min­ers de­liv­ered 4 758,09kg.

Since the May an­nounce­ment gold de­liv­er­ies from small-scale min­ers have in­creased from a year to date low of 601,73kg to 742,87kg in June and to the high­est out­put this year of 776,40kg.

The av­er­age price per ounce has risen from $1 097,38 in Jan­uary to $1 337,33 in July.

Govern­ment says there is scope to raise de­liv­er­ies from small-scale min­ers by curb­ing the smug­gling of gold which is es­ti­mated to take up to 50 per­cent of the gold pro­duced in the coun­try.

Zim­babwe’s gold out­put is en­vis­aged to in­crease to 50 tonnes by 2020, gen­er­at­ing $1,8 billion an­nu­ally.

A to­tal of $600 mil­lion is re­quired to in­crease pro­duc­tion in the next five years of which $410 mil­lion re­lates to ramp up cap­i­tal, while $190 mil­lion is for sus­te­nance of op­er­a­tions.

Gold is cur­rently con­tribut­ing around 4 per­cent to the fis­cus through Govern­ment taxes and other fis­cal charges, and an ad­di­tional 4 per­cent is gen­er­ated in the value chain.

Mean­while, Mines and Min­ing devel­op­ment Min­is­ter Wal­ter Chid­hakwa said gold min­ing ac­tiv­i­ties at Gache-Gache in Kariba are ex­pected to com­mence next month fol­low­ing com­ple­tion of the com­mis­sion­ing of plant and equip­ment.

Min­is­ter Chid­hakwa said com­mis­sion­ing of equip­ment has com­pleted but full min­ing op­er­a­tions will start af­ter com­ple­tion of the eval­u­a­tion process.

At Gache-Gache we are still eval­u­at­ing the de­posits, but pre­lim­i­nary op­er­a­tions will be start­ing next month as the equip­ment and plant are now in place,” he said. — Wires.

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