Gold deliveries to FPR increase 7% in July as small scale miners contribution grows


Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann


Gold deliveries to Fidelity Printers and Refiners increased 7.14% in July to 1817kg from 1 695.9kg in the previous month. Latest data for the seven months shows that gold purchases by FPR amounted to 11 444.69kg against the set full year target of 24 000kg.

Gold deliveries have begun rising as the prices continue to firm on the global market while according to the Reserve Bank of Zimbabwe there has been an increase mainly from the small scale miners following the implementation of the 5% export incentive scheme in May this year.

Of the gold deliveries, 6 686.59kg came from primary producers while small scale miners delivered 4 758.09kg. Since the May announcement gold deliveries from small scale miners have increased from a year to date low of 601.73kg to 742.87kg in June and to the highest output this year of 776.40kg.
The average price per ounce has risen from $1 097.38 in January to $1 337.33 in July.

Government says there is scope to raise deliveries from small scale miners by curbing the smuggling of gold which is estimated to take up to 50% of the gold produced in the country. Zimbabwe’s gold output is envisaged to increase to 50 tonnes by 2020, generating $1,8 billion annually.

A total of $600 million is required to increase production in the next five years of which $410 million relates to ramp up capital, while $190 million is for sustenance of operations. Gold is currently contributing around 4% to the fiscus through government taxes and other fiscal charges, and an additional 4% is generated in the value chain.

Meanwhile, Mines and Mining development Minister Walter Chidhakwa says gold mining activities at Gache-Gache in Kariba are expected to commence next month following completion of the commissioning of plant and equipment.

Gold and platinum deposits were discovered around the confluence of Gache-Gache River as it flows into Lake Kariba during sand abstraction for construction work at the Kariba South power expansion project site.

Chidhakwa said commissioning of equipment has completed but full mining operations will start after completion of the evaluation process. At Gache-Gache we are still evaluating the deposits, but preliminary operations will be starting next month as the equipment and plant are now in place,” he said.

The Zimbabwe Consolidated Diamond Corporation (ZCDC) is conducting mining activities in Gache-Gache on behalf of Government.

Leave a Reply

Your email address will not be published. Required fields are marked *

three × two =