Gold exports rake in  $240m for first half

gold1Business Reporter
ZIMBABWE realised about $240 million from gold exports in the six months to June, according to data obtained from the Mines and Mining Development Ministry.
Gold deliveries to Fidelity Printers and Refiners, the country’s sole buyer of the metal, hit six tonnes in six months through June, with large producers delivering the bulk of metal.
Large gold mining firms delivered 4,7 tonnes, with the remainder coming from 71 small-scale miners. Gold miners pay 7 percent in royalties to Government of gross revenue realised from sales.

Average realised international gold price for the first half stood at $1 290 an ounce, but is expected to drift lower in the second half of 2014, leading to a second yearly drop in the average price, according to analysts estimates complied Reuters.

The survey forecasts an average price of $1 270 an ounce for the third quarter, down from the average first-half price. In the last quarter, prices are seen averaging $1 255.

That will be the second year in which the gold price has fallen, following a 28 percent drop last year.
Fidelity Printers resumed gold refining in December last year since 2008 and the country will soon be seeking re-admission into the London Bullion Market Association this year.

Before resuming gold refining, all gold was being exported unrefined and this, among other things, negatively affected the local jewellery industry as it resorted to importing refined gold and silver.

With national deliveries surpassing 10 tonnes in 2012 and 2013, coupled with the resumption of refining, the refinery should be on course for LBMA re-accreditation.
This will be on condition that all the gold being delivered through the formal channels is refined prior to export.

The resumption of refining comes with a number of positives for the country, including providing feedstock for the resuscitation of the local jewellery industry as well as increasing the cost competitiveness of local products on both local and international markets.

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