Gold export earnings drop

ZIMBABWE'S gold export earnings decreased by 32,9 percent to US$500 million in the first half of this year compared to about US$670 million recorded in the same period last year.

Speaking during a gold mining conference in Gwanda yesterday Reserve Bank of Zimbabwe principal inspector in the Exchange Control Inspectorate, Mr Paul Mapanzure, said mineral export revenue from January to June 21 this year amounted to US$1,3 billion compared to US$1,4 billion over the same period last year. He said this had been caused by a drop in gold deliveries to Fidelity Printers Refiners.

Mr Mapanzure said as at May 31 gold deliveries to Fidelity Printers were at 10 807 kgs compared to 13 596 kgs over the same period last year.

"During the period 1 January to 21 June 2019 mineral export revenue amounted to US$1,289,519,320 compared to US$1, 458,752,513 during the same period in 2018. Gold exports for the period 1 January to 21 June 2019 were US$449,967,501 compared to U$670,404,848 for the same period in 2018, a reduction of 32,9 percent.

"Among mineral exports, gold ranks second in revenue generation. As at 31 May 2019 gold deliveries to FPR were 10 807kgs compared to 13 596kgs as at 31 May in 2018. By 31 May small scale producers delivered 6 611kgs compared to 8 386 delivered last year while large scale miners delivered 4 196kgs compared to 5 211 last year,'' he said.  

Mr Mapanzure said the mining sector played an important role in the country by making a significant contribution to GDP, employment creation and foreign exchange generation. He said the sector contributes over 60 percent of the country's export receipts with gold, platinum, ferrochrome, chrome and diamonds topping the list.

Mr Mapanzure said RBZ had put in place interventions to increase gold deliveries such as the Gold Development Initiative Fund (GDIF), which was currently sitting at $200 million. He said $20 million of this fund has been set aside for women in mining, adding that so far $121 million has been disbursed to 357 beneficiaries.

"The Reserve Bank together with other stakeholders shall continue to work closely with artisanal and small scale miners with a view of improving the funding and operational efficiencies by the gold sector. On the other hand compliance by gold producers in terms of gold marketing is critical in order for the country to realise full value from its gold deposits,'' he said  

Fidelity Printers mining investment fund advisor, Mr William Gambiza, said they had recorded a decline in deliveries of gold because of a number of challenges faced by small scale miners among them power outages and lack of fuel. He said they were working on resolutions in order to grow gold output and increase deliveries.

Mr Gambiza expressed concern that few women were participating in mining activities and urged them to take up the fund and grow their businesses. He took the miners through the necessary requirements of accessing the Gold Development Initiative Fund and explained what the fund entailed.