Gold export revenue declines 16%

 LIVINGSTONE MARUFU 

 

Zimbabwe’s revenue from gold exports decreased 16% to US$882.66 million in the first half of this year from US$1.047 billion reported in the same period last year on a drop in deliveries.

Deliveries to Zimbabwe’s sole buyer and marketer of the yellow metal, Fidelity Gold Refinery (FGR), fell by 11% to 14.18 tonnes during the first half of the year from 15.97 tonnes the previous year.

FGR general manager Peter Magaramombe however, told Business Times that after engagements with the authorities, the gold production was anticipated to increase even more.

“The gold export receipts have dipped following the drop in output during January and February but more measures are in place to recover that period,” Magaramombe said.

He added: “We are expecting the authorities to increase gold buying centres and the agents to ensure there is a minimum side marketing.”

Of the total gold production, 8.66 tonnes was delivered by small-scale miners who accounted for 61% of total deliveries.

Large scale miners accounted for 5.52 tonnes during the last six months.

Experts said there was need to introduce new policies to ramp up production and capitalise on firm strong commodity prices which are above US$61 000.

However, the yellow metal is being smuggled due to payment delays by FPR.

CEO of the Gold Miners Association of Zimbabwe Irvine Chinyenze stated that instant payments would result in better deliveries.

Deliveries have been hampered by inconsistent payments as incapacitated small-scale miners search for other ways to be paid immediately, according to Chinyenze.

He claimed that small-scale mining should not remain archaic by using a pick and a shovel, but rather should have advanced by mechanising, acquiring technical know-how, skills, and resources, but miners are still unable to work.

Taxes have remained a pain in the back for miners and the situation continues to affect production and productivity.

This has promoted gold smuggling and destroyed the building of gold reserves.

Experts say there was a need to review retention levels for the large scale miners and capacitation of small scale miners to ramp up production.

The government has moved to provide equipment in gold centres to move towards helping the attainment of US$4bn gold export revenue.

Under the US$12bn mining sector target by 2023, gold is expected to contribute US$4bn.

 

 

Related