The Sunday Mail
The country’s sole buyer of gold, Fidelity Printers and Refiners, targets output of more than 15 tonnes this year while greater returns are expected from the yellow metal in light of anticipated listing on the London Bullion Market Association.
In 2014 Zimbabwe produced 13,9 tonnes of gold, surpassing the LBMA’s minimum requirement of 10 tonnes in a calendar year.
As a result of this, Fidelity submitted its request to be re-accredited on the LBMA — the world’s largest wholesale market for gold.
Responding to questions from this paper last week, Fidelity said this year’s output would surpass 15 tonnes owing to several measures geared at ring-fencing the gold sector.
“The achievement of the target is subject to such factors as the availability of electricity, funding, equipment as well as the viability of the international gold price,” said the company. Fidelity said it was working with the Zimbabwe Mining Development Corporation to establish gold service centres to increase production across the country.
The gold buyer said it would also improve surveillance, particularly of small-scale miners, to monitor production and ensure deliveries through formal channels.
The company, a subsidiary of the Reserve Bank of Zimbabwe, will also supply chemicals used by gold producers as well as provide licences for custom millers to become its agents.
“Other viable options are being worked out to increases gold buying coverage. One such option is the licensing of custom millers as gold buying agents for FPR and paying a commission for gold collection.
“In 2015, mobile buying units will be established where necessary bearing in mind viability issues, to complement existing facilities.”
Listing on the LBMA is expected to bring other benefits to the gold sector, which include reduced refining costs.
Currently, Zimbabwe is refining in South Africa, but the open market treadability of gold bars at the LBMA means that there will be need for such prohibitive charges.
The LBMA market will also afford the country the opportunity to widen its market for the yellow metal as well as opening up opportunities for value addition.
Fidelity said it was awaiting final approval to list on the LBMA.
“We have informed the LBMA of our resumption of gold refining and our desire to be re-accredited as quickly as possible. The fact that we managed to refine more than the minimum 10 tonnes in a calendar year is one step amongst others towards re-accreditation. Refining a minimum of 10 tonnes per year is therefore an ongoing requirement.
“The company has initiated the process and awaits a formal response from LBMA on the walking path it has to follow to full accreditation as a former accredited refinery.”
