The Sunday Mail
THE Reserve Bank of Zimbabwe (RBZ) has managed to smoothen the operations of its gold-buying unit Fidelity Printers and Refiners (FPR) through providing resources needed to pay off gold producers.
There is general optimism that gold deliveries will not be disrupted by present cash shortages.
FPR started experiencing “minimal” cash shortages in November last year, resulting in two-day delays in payments.
Although the situation temporarily improved, the shortages have since resurfaced.
FPR general manager Mr Fradreck Kunaka told The Sunday Mail Business last week that miners are now being paid timeously after RBZ’s intervention.
“To date no miner is owed by FPR for gold delivered, thanks to the intervention of the RBZ which started in December 2015. The interventions involved provision of cash for gold buying through our bankers and availing some of the cash directly to FPR for purposes of paying for gold delivered.
“Other banks through which FPR does its banking came in to assist with cash, thus, salvaging the situation. No miner has gone for more than five days without being paid for gold delivered,” said Mr Kunaka.
Gold producers are still delivering 1,5 tonnes per month, with cumulative deliveries topping 4,6 tonnes in the three months to March.
Of the $174 million that was paid to miners, 42 percent of the amount, or $73 million, was paid in cash to artisanal and small-scale miners.
Big mining houses contributed 58 percent of the output, while small-scale producers accounted for 42 percent of deliveries in the first quarter.However, the Eastern and Southern Africa Anti-Money Laundering Group, which was in Harare on April 21 and April 22, 2016 assessing the country risk in regards to money laundering and terrorism financing, expressed concern over the high risk posed by buying gold in cash.
Authorities are now trying to convince artisanal and small-scale miners to start using formal banking systems.Gold output is forecasted to rise to 24 tonnes this year from 18,3 tonnes in 2015.FPR is confident that the targeted production will be achieved.
“Further, more and more miners are receiving their money through the banks and a portion in cash. Such arrangements will reduce pressure on banks to source for the physical cash which augurs well for the international thrust of transactions being undertaken through the banking system,” added Mr Kunaka.
Government is actively encouraging miners to sell their gold through formal systems in order to help them benefit from the existing mining finance schemes.
