eBusiness Weekly
Business Writer
Gold miners – both large and small-scale – have raked in almost $31 million from the export incentive introduced by the Reserve Bank of Zimbabwe (RBZ) in May last year,latest statistics show.
RBZ Governor Dr John Mangudya, announced an export incentive of 2,5 percent and 5 percent for small-scale and large-scale exporters, respectively, so as to boost foreign currency generation.
The incentives are extended to all exporters.
However, gold miners – who are literally carrying the economy on their shoulders given that the tobacco selling season has concluded – pocketed, $30,7 million between May last year and July 31, 2017.
Statistics from the RBZ seen by Business Weekly, indicate that during the period under review, total gold exports generated just over $872 million.
Primary gold producers – also known as large-scale miners – received just over $15 million in export incentives, while small-scale and artisanal miners got just above $15,6 million, the statistics show.
Small-scale and artisanal miners have become the biggest producers of gold in recent months, and deservedly got more from the export incentive than primary producers.
It is understood that gold exports are generating anything between $13 and $16 million per week, enabling the economy to tick.
In October alone, gold producers delivered 2,8 tonnes from 2,5 tonnes in September, with small-scale miners ramping up deliveries of the yellow metal to Fidelity Printers and Refiners (FPR) by 15,4 percent to 1 672,1 kgs, from 1 449 kgs in the previous month.
FPR is the gold buying arm of the RBZ.
Large-scale gold producers also increased their output marginally in October to 1 098,5 kgs last month from 1 046 kgs in September.
In terms of deliveries to FPR, small-scale and artisanal gold miners have consistently outperformed primary producers from June this year after producing 1 046 kgs.
The Zimbabwe Miners’ Federation (ZMF), an umbrella body representing over 8 000 small-scale miners – says the rise in gold production is anchored on improved mineral processing technology by its members.
Realising the key role played by small-scale miners in gold production and deliveries, the RBZ secured a $40 million Gold Development Initiative to help them acquire critical mining equipment that can help them push up production.
The facility is handled by FPR.
Only companies or individuals “with a traceable gold delivery track record” to FPR and/ or its accredited gold buying agents for a period of one year, are eligible to access funds under the Gold Development Initiative.
As at August 31, 2017, almost $36,4 million had been disbursed to small-scale miners.
Said the central bank: “RBZ expects artisanal and small-scale miners to remain compliant to the gold marketing framework currently in place through the following initiatives; avoiding the sale of gold to the black market (and) reporting to the authorities all side marketing activities of gold in the areas of their operations.
“The central bank also expects artisanal and small-scale miners to embrace financial inclusion by opening bank accounts.
“More financial support is being mobilised to support artisanal and small-scale miner.”
The RBZ also wants the informal gold sector to graduate and become formalised.
Currently, FPR, together with officials from the RBZ, Ministry of Mines and Mining Development, the Zimbabwe Revenue Authority (Zimra), the Environmental Management Agency (EMA) and the Zimbabwe Republic Police (ZRP), is conducting outreach programmes educating small-scale miners on the importance of delivering gold through the formal channels.
Nine outreach meetings in gold producing areas have been lined up, and so far, three have been undertaken in Mazowe and Mount Darwin (Mashonaland Central) and Odzi (Manicaland).
