Zimbabwe to rejoin UK gold trading centre

Zimbabwe plans to rejoin the London Bullion Marketing Association (LBMA) by the end of next year after complying with the global gold trading centre's requirements.

The government is in the process of terminating its gold selling contract with the South African Rand Refinery after the resumption of Fidelity Printers and Refiners as the sole gold buyer paving way for Zimbabwe to rejoin the biggest centre for gold trading, the LBMA.

Zimbabwe is seeking re-entry into LBMA after it was disqualified in 2008 when gold production dropped to an all-time low of three tonnes, a figure far below the mandatory annual production of 10 tonnes required by the prestigious market.

The Deputy Minister of Mines and Mining Development Engineer Fred Moyo says the rise in gold output to 14 tonnes by December 2013 has resulted in government targeting the end of 2015 as the deadline for rejoining the LBMA.

"We are definitely rejoining because there are significant opportunities," said Engineer Moyo.

Zimbabwe Miners Federation president Trynos Nkomo says re-admission into the LBMA will enable the country to increase its ability to sell its precious metal to global buyers.

"We are definitely yearning for such an arrangement as it can unlock more benefits," Mr Nkomo said.

The LBMA is a wholesale market for the trading of gold and silver.

Trading is conducted among members of the LBMA, and overseen by the Bank of England.

Most of the members are major international banks or bullion dealers and refiners.