Gold deliveries up 7 percent

30 Aug, 2016 - 00:08 0 Views
Gold deliveries  up 7 percent Gold bars

The Herald

Gold bars

Gold bars

Gold deliveries to Fidelity Printers and Refiners increased 7,14 percent in July to 1 817kg 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 small-scale miners following the implementation of the 5 percent 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 percent 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 percent to the fiscus through Government taxes and other fiscal charges, and an additional 4 percent is generated in the value chain.

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

Minister 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. — Wires.

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