Calls for domestic minerals exchange

Business has called upon the fiscal authorities to consider the adoption of a minerals exchange in order to hedge against metal prices fluctuations and to enhance the value of the minerals.

The tumbling of commodity prices on the international market in recent past years has re-ignited debate on the need to explore strategies to attract greater value from local mineral resources and the prospects of a domestic minerals exchange.

Zimbabwe National Chamber of Commerce chief executive officer Christopher Mugaga is convinced the country stands to get maximum value from the mining sector with the adoption of a minerals exchange.

"There is no doubt that the fluctuations in commodity prices on the international prices have had a negative impact on the domestic economy. The adoption of a minerals exchange will certainly ensure the country gets greater value from the commodities," said Mugaga.

The mineral exchange will allow for forward contracts where prices of minerals can be decided now for future trading as a way of hedging against commodity price fluctuations.

Platinum and gold prices have been subdued for the past few years owing to the slowdown in the world's second largest economy, China, which is responsible for half of the world metals demand.