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Walter Mswazie in MASVINGO
SMALL-scale miners in Masvingo have appealed to the Reserve Bank of Zimbabwe (RBZ) to effect the planned incentives on gold producers and cushion them from increasing production costs. RBZ Governor Dr John Mangudya recently indicated that plans were underway to give incentives to gold producers.

He did not mention the nature of the incentives.
Youth in Mining patron Mr Benjamin Mazarire said gold producers were hard hit by production costs as prices for consumables were quoted in foreign currency.

He said it had become more expensive to produce gold, forcing some “unscrupulous” producers to trade on the black market where the rates were tempting instead of selling it to Fidelity Printers and Refiners.

“We were happy when RBZ Governor Dr John Mangudya admitted that there is need for gold producers to be incentivised,” he said. “We cannot wait for the incentives as we wish they would cushion us from production costs that we incur.

“We are still mourning the reduction of our foreign currency retention from 70 percent down to 55 percent. We thought some incentives will go a long way in alleviating our plight as small-scale gold producers.”

In his 2019 Monetary Policy Statement Dr Mangudya reduced the foreign currency retention threshold from 70 to 55 percent.
Mr Mazarire, who owns Somerton Mine about 20km northwest of Masvingo, said formal gold mining revolved on the use of foreign currency and was a capital intensive venture.

“The dynamite we buy or any explosive that are needed in blasting cost a fortune and the prices are quoted in United States dollars,” he said. “We need explosives that are sold in foreign currency.

“We also need foreign currency on amalgamation or cyanidation during gold leaching. It has become costly to produce gold given the low forex retention rates. We call upon the RBZ to avail new incentives as soon as possible.”

Small-scale gold miners are the biggest producers of the yellow metal earning the country the much needed foreign currency.
Last year they delivered 33,2 tonnes of gold to Fidelity Printers.