Home » Industry » Government Moves to Plug Gold Leaks

The Ministry of Mines and Mining Development has set up a task force comprising its officials, Reserve Bank of Zimbabwe, Zimbabwe Republic Police, Fidelity and Minerals Marketing Corporation of Zimbabwe to plug in gaps that have seen the country losing potential revenue through gold leaks.

In an interview, Deputy Minister of Mines and Mining Development Engineer Fred Moyo said the ministry had set a 25-member task force in each province subdivided into five groups to descend on all gold mines, milling plants and custom millers.

Deputy Minister Moyo said the country was losing revenue through smuggling, site marketing, and inflation of operational costs while some companies were declaring less than they would have extracted or realised from gold sales.

“We have set up a task force in each province to monitor all companies that are into gold mining milling plants and custom millers. We realised that we have been losing gold through leakages and we now want to plug in those gaps. We will descend on all companies dealing with gold in the country,” he said.

Deputy Minister Moyo said all companies that are found on the wrong side of the law shall be either be closed or seized.

“Some companies have been smuggling gold outside the country and refining it in neighbouring countries. Some have not been declaring all the gold that they would have realised. We also don’t have metallurgical standards in terms of gold processing. We have no technology to determine the metal units of other minerals in gold and as a result we have been losing much,” he said. He said that Government would withdraw operating licences from companies that would fail to comply or declare less gold.

“We are also going to check their compliance in terms of certificates, production records, wage bill, and operational costs. We want to ensure that the equipment that is coming from China will find us with a system that protects us from gold leakages. We will plug in all the gaps,” he said.

Deputy Minister Moyo said South Africa had stopped discounting all gold dealers to also curb gold smuggling.

“South Africa has been removing 15 percent discount on all dealers selling processed gold. However, they have since stopped that after realising that they have also been losing a lot. Most gold smugglers were selling their gold to South Africa,” he said.

President Mugabe on Friday said all gold extracted in the country shall be sold to Government through Fidelity.

“We want all our gold to be sold to Fidelity. We hear that there was gold being smuggled outside the country while some was being sold on informal markets. We need to plug in those gaps and ensure that the country benefits from its mineral resources,” he said.

Source : The Herald