Gold deliveries surpass 30-tonne target

ZIMBABWE’s gold output has surpassed the country’s initial annual target of 30 tonnes with producers delivering 30,3 tonnes of the yellow metal two months before the year comes to an end.

Due to increased output by players, Government has revised this year’s gold output to 35 tonnes.

According to latest data released by the country’s sole gold buyer, Fidelity Printers and Refiners, between January and October, primary producers delivered 9,9 tonnes while small-scale miners delivered 20,4 tonnes.

Recently, the Reserve Bank of Zimbabwe has attributed the continued upsurge in output of the yellow metal to incentives the monetary authority has availed to the miners.

Zimbabwe Miners’ Federation spokesperson Mr Dosman Mangisi, whose organisation represents the interests of small-scale miners, said on a month-on month basis, their subsector has proved to be a major player in gold production.

However, in October, small-scale miners produced two tonnes of gold compared to 3,5 tonnes in September. Mr Mangisi attributed the decline during the period under review to the prevailing macro-economic situation characterised by fuel challenges as well as recent policy measures announced by Treasury.

“As a result of the fuel challenges, this meant that small-scale miners recorded increased downtime. Before the new policy pronouncement by the Minister of Finance, small-scale miners were receiving 30 percent of their payment in forex but all of a sudden because of a policy shift, the money is now being paid 100 percent in local currency,” he said.

Despite the challenges affecting small-scale miners, Mr Mangisi said the country was headed towards achieving the projected 35 tonnes of gold this year, adding that this was likely if Government addresses the miners’ concerns.

In the mid-term monetary policy statement presented in August, RBZ Governor Dr John Mangudya said as part of strategies to enhance foreign currency inflows from tobacco and gold sectors, the monetary authority was increasing input finance facilities for the two commodities.

“In order to enhance foreign currency inflows from tobacco and gold production, the tobacco input finance facility has been increased from the $28 million disbursed in 2017 to $70 million, while the gold support facility has been increased from $74 million (disbursed to 255 entities) in 2017 to $150 million.”

In 2017, the gold support facility together with the periodic onsite monitoring by the Gold Mobilisation Technical Committee greatly contributed to improved gold deliveries to Fidelity Printers and Refiners from 21,439 tonnes in 2016 to 24,843 tonnes with smallscale gold producers accounting for 53 percent of the total output. — @okazunga