57.6% rise in gold deliveries

Published: 19 April 2018

ZIMBABWE'S gold deliveries surged 57,6 percent in the first quarter of 2018 to 7,3 tonnes compared to 4,63 tonnes during the same period last year.

Gold output in the first quarter of 2017 was largely affected by the incessant rains, which saw most of the mine shafts being flooded. Data from the country's sole gold buying unit, Fidelity Printers and Refineries show that the small-scale mining sector has maintained its production dominance over primary producers as the sector produced 4,2 tonnes in the first quarter.

Large scale miners delivered three tonnes of the yellow metal. In January this year, small-scale miners delivered 1,4 tonnes of gold, in February 1 tonne and 1,8 tonnes in March.

Primary producers delivered 1,2 tonnes in January, 931,7 kilogrammes in February and 953,3 kg last month. In an interview yesterday, the Zimbabwe Miners' Federation (ZMF) chief executive officer Mr Wellington Takavarasha attributed the upsurge in gold production in the first quarter to improved business environment.

"The increase in gold deliveries in the first quarter compared to the same period last year was largely as a result of improved business environment created by the new political dispensation," he said.

Mr Takavarasha said his organisation has been working with Government to enhance ease of doing business hence the improved production recorded.

He said Government's efforts to re-engage the international community had also impacted positively on small scale miners' production.

"The new political dispensation has made great strides in improving the country's relations with the international community and this has seen a number of potential investors coming to explore investment opportunities," said Mr Takavarasha.

For close to two decades, Zimbabwe under former President Robert Mugabe, has been isolated from the international community and this forced the country to adopt multi-currency system in February 2009 to arrest runaway inflation.

The country during the period was recording between $300 million and $500 million in approved foreign direct investment annually compared to $2 billion which was being recorded by other regional countries such as Zambia and Mozambique.

The coming in of a new political administration led by President Emmerson Mnangagwa in November last year has seen Zimbabwe's relations with the international community improving. Against this background, Zimbabwe has since attracted nearly $7 billion in foreign direct investments in various economic sectors.

Mr Takavarasha said gold output has also been boosted by the incentive introduced by Government through the Reserve Bank of Zimbabwe (RBZ).

Buoyed by sterling performance of the gold sector last year, RBZ has this year increased the gold support facility for the small-scale mining sector to $150 million from $74 million disbursed last year.

Both primary and small-scale producers last year delivered 24,8 tonnes of gold to Fidelity Printers and Refiners up from 21,4 tonnes in 2016. Of the total gold produced last year, 13,4 tonnes came from the small-scale miners.

Government targets 30 tonnes of the yellow metal this year.
- chronicle

Tags: Gold,