Boost for ZiG as gold deliveries soar

Sunday Mail Reporter

IN a huge boost to the country’s ongoing programme to further grow reserves supporting the new local currency, Zimbabwe Gold (ZiG), gold deliveries saw a significant increase in July, driven primarily by a surge in contributions from artisanal and small-scale miners.

Latest statistics from Fidelity Gold Refinery (FGR), the country’s sole gold buyer, indicate that deliveries jumped by 33 percent in July to 3 495 kilogrammes (kg), up from 2 618kg in June.

Deliveries by artisanal and small-scale miners rose by 45 percent in the period, reaching 2 343kg, surpassing large-scale miners’ contributions for the first time in two months.

Large-scale miners also recorded an increase, delivering 1 152kg, up from 1 000kg in June.

Zimbabwe Miners Federation (ZMF) president Ms Henrietta Rushwaya said the surge in gold deliveries is a positive development for the economy.

“The figures released by Fidelity for July demonstrate the small-scale mining sector’s commitment to boosting the gold sector. We want to applaud the Government for the various interventions they have made to assist us to formalise and mechanise our operations to increase our production,” she said.

She commended FGR for incentivising the small-scale gold mining industry, which has helped plug leakages.

“Rampant leakages are now a thing of the past, and as such, we are determined to produce more and, in the process, combat the smuggling of gold,” added Ms Rushwaya.

“Through the good retention offered by Fidelity, it has now become the hub for gold collection, unlike previously, where it was competing with South Africa, where our gold was being smuggled.

“Fidelity has come up with very good retention (100 percent forex retention), and we also need to be seen reciprocating the gesture. Delivering to Fidelity is our way of reciprocating. Fidelity is also now paying our miners swiftly. We thank them for these improved efficiencies.”

Delivering gold through the official channels, she said, also helps boost the gold-based local currency.

“As the ZMF president, I strongly urge all small-scale miners to deliver more gold to FGR. The more gold we supply to FGR, the stronger the foundation for our national currency,” she said.

Under new regulations, mining companies are now required to pay 50 percent of their royalties in kind.

Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu recently indicated that cash and mineral reserves backing the new currency, which was introduced on April 5 this year, had risen from US$285 million to approximately US$370 million over the three months to June.