Gold dims as deliveries drop 17%
GOLD deliveries to Fidelity Printers and Refiners (FPR) dropped 17% to 27,65 tonnes in the 11 months to November from the same period last year, latest data shows, as the sector is set to miss its targeted output for the year.
In the same period last year, deliveries were 33,3 tonnes.
The drop in deliveries is a huge blow for the sector that was hoping to reach a target of 40 tonnes by year end. The drop in output will also affect export earnings as the yellow metal is one of Zimbabwe’s top export earners.
According to the FPR’s report, artisanal miners contributed 61,58% to total gold deliveries during the 11-month period under review while large producers made up the remainder.
However, the contribution from the artisanal miners was lower than the comparative 2022 period when deliveries from small-scale gold miners were 65,03% of the total deliveries.
Zimbabwe Miners Federation chief executive Wellington Takavarasha declined to comment on why there was such a drop while the Association of Mine Managers of Zimbabwe president Abel Makura referred the matter to the Chamber of Mines of Zimbabwe (CoMZ)
However, as of writing this, CoMZ president Thomas Gono said he was still working on responses to inquiries made by NewsDay Business.
But Centre for Natural Resources Governances executive director Farai Maguwu told NewsDay Business that the decline was a serious indicator of organised crime and smuggling in the yellow metal sector.
“Gold mining has increased; more and more people have turned to gold mining. Old mines have been reopened. However, Fidelity designated several illicit gold dealers as its agents,” he said.
“These submit to Fidelity what is sufficient to retain their agent status. Some like the recently convicted gold smuggler Henrietta Rushwaya preside over Zimbabwe Miners Federation which retained her as its president after her conviction, indicating the entire federation is a citadel of organised crime.”
He said the challenge was that the industry was poorly regulated and heavily politicised which is why dealers often submitted lower amounts than what was mined.
“Fidelity must revoke gold buying permits and put in place a more rigorous process that ensures only applicants with integrity and a proven track record of honesty are given agent status,” Maguwu said.
“They must decentralise Fidelity as well and ensure it is easily accessible to miners. They must make it easy for miners to sell legally. Artisanal miners need to be decriminalised and get social skills. Fidelity prices must always match global prices to disincentivise smuggling. It must make economic sense to miners and dealers to sell their gold to Fidelity.”
During the first quarter, the gold sector was negatively affected by incessant rains which limited production of the yellow mineral.-newsday
