The Sunday Mail
FIDELITY Printers and Refiners (FPR) used more than half a billion dollars to buy gold from mining houses and small-scale gold producers across the country.
More than 13,9 tonnes of gold was realised last year though deliveries fell short of the 14,5-tonne Government target.
FPR, a unit of the Reserve Bank of Zimbabwe, is the country’s sole official gold buyer and has strategic arrangements with banks for bridging finance to cover for more-than-forecast deliveries.
“The company was within range of its target of 13,92 (tonnes). Actual deliveries from miners were 13,9 (tonnes) which is 20kg lower than the target,” said FPR.
This year, FPR has set aside funds to purchase 15 tonnes of gold.
“We have adequate financial resources to buy all gold available for sale from mines. In case there is an upsurge in price and/or volumes, we have standby facilities with banks ready to be activated.”
Usually, small-scale miners are paid upon delivery while primary producers are paid within 48 hours.
International gold prices tumbled 30 percent last year and the yellow metal traded at US$1 199 as at December 31, 2014.
In 2013, global gold prices fell 28 percent to record the biggest annual decline in 32 years.
Gold prices rose to a high of US$1 921 in August 2011.
Zimbabwe produced 27 tonnes of gold at its peak in 1999 but production slumped to an all time low of 3,9 tonnes in 2008.
Subsequently, the country became ineligible for the London Bullion Market Association (LBMA), a platform that offers premium prices.
Plans are now underway to rejoin the LBMA.
“The fact that we managed to refine more than the minimum 10 tonnes in a calendar year (2014) is one step amongst others towards re-accreditation (and) awaits a formal response from LBMA on the walking path it has to follow to full accreditation as a former accredited refiner.
“Refining a minimum of 10 tonnes per year is therefore an ongoing requirement,” explained FPR.
The re-accreditation process depends on a number of stages and technical requirements that have to be met.
