Home » Business » Gold Deliveries Top 12 Tonnes

GOLD deliveries to Fidelity Printers and Refiners reached 12,3 tonnes during the 11 months to November, surpassing the minimum 10 tonnes required for Zimbabwe’s re-accreditation into the London Bullion Marketers’ Association, latest statistics show.

Large-scale miners delivered about 9 tonnes while small-scale miners delivered 3,2 tonnes, according to figures released by Fidelity Printers, the country’s sole gold buyer.

Zimbabwe was de-registered by LMBA after production fell to below three tonnes in 2008 as a result of delayed payments to miners by the RBZ, which was the sole buyer of the metal.

This resulted in many companies closing down, only to reopen in 2009 when the RBZ deregulated the industry which allowed gold miners to independently sell their bullion.

Fidelity has already made an initial application aising LBMA that Zimbabwe would refine 10 tonnes this year and would seek re-admission on the London market.

The re-admission of Zimbabwe on the London market, the world’s biggest gold trading centre, means the country will have access to global gold buyers. At the moment, Zimbabwe is selling its gold through Rand Refineries and is charged 0,3 percent for revenue.

Among the top producers were Mwana Africa’s Freda Rebecca which delivered 1, 64 tonnes, Metallon’s How Mine, 1,27 tonnes and Caledonia’s Blanket Mine, 1,23 tonnes.

Zimbabwe has projected that gold output would reach 14,5 tonnes this year before reaching 16 tonnes next year. Capital injections by mining houses, rebound in international gold prices as well as production ramp-up at Freda Rebecca Mine will support higher gold production next year, according to the Finance Ministry.

“Further, the registration and licensing of custom millers and gold buying centres across the country is expected to plug gold leakages, thereby leading to improved gold deliveries to Fidelity Printers and Refiners,” Minister Patrick Chinamasa said in the 2015 National Budget.

The Government recently signed a $100 million line of credit for small-scale miners.

Gold production recovered despite recent downward trend in prices, from a peak of $1 725 an ounce in February 2013, to an average of around US$1 100 an ounce in October 2014

Source : The Herald

Archives