Miners dig closer to gold record

GOLD producers have delivered 24,8 tonnes to Fidelity Printers and Refiners (FPR) in the eight months to August 31, matching last year’s output with four months left before year-end.

The haul is two tonnes shy of the 27-tonne record realised in 1999, raising expectations the country will achieve this year’s 30-tonne target.

Small-scale miners delivered 16,5 tonnes, which is twice the 8,2 tonnes received from large-scale producers.

Last month alone, FPR took delivery of 3,9 tonnes worth $150 million.

Government continues to materially support small-scale miners, and $94 million out of $150 million has been released to the sub-sector through the Gold Development Initiative Fund.

FPR created the GDIF as a stand-alone division in April 2018 to enhance efficiencies and improve customer experiences.

FPR general manager Mr Fradreck Kunaka told The Sunday Mail recently that Government, in addition to paying 70 percent cash, continues to pay a five percent incentive on gold deliveries.

“Under the Gold Development Initiative Fund, a total of $94 million out of the $150 million has been disbursed to date,” said Mr Kunaka. “The GDIF division comprises of 15 banking and mining investment finance professionals with representation in all regions countrywide.”

The division’s head, Mr Matthew Chidavaenzi, recently told small-scale miners in Gwanda that a huge number of loan applications were being processed.

The GDIF team together with the gold operations department, FPR said, were currently on an aggressive awareness campaign aimed at increasing deliveries.

Mr Kunaka said, “The rolling out of the campaign began in Gwanda on the 30th of August, 2018 with about 120 participants attending. These included artisanal and small-scale miners, the Reserve Bank of Zimbabwe, Environmental Management Agency, Ministry of Mines and Mining Development and suppliers in the mining sector.”

The programme goes to Matabeleland North, the Mashonaland provinces, Masvingo, Midlands and Manicaland next.

Experts say Zimbabwe has the second-largest gold reserves per square kilometre in the world, with 13 million tonnes of proven reserves. Only 580 tonnes have been exploited since 1980.

The RBZ says the country has potential to earn over $4 billion yearly from gold exports.

Gold production peaked at 27,1 tonnes in 1999 and dropped to 3,5 tonnes at the height of Zimbabwe’s economic crisis in 2008.

Mines and Mining Development Minister Mr Winston Chitando has said Government intends to quadruple production to more than 100 tonnes annually.

Government also intends to build the country’s reserves as a precondition to create sustainable macroeconomic stability.