Zim to loosen gold trade rules

The Ministry of Mines and Mining Development is in the process of liberalising gold trade rules in order to boost production and curb the smuggling of the mineral by small scale miners.

The review of the rules comes at a time gold production has reached 11140 kilogrammes in the first nine months of 2012 due to the firming of international prices.

The yellow metal is regulated by the Gold Trade Act of 2006, which imposes penalties for the unlawful possession of, or trading in gold.

Mines and Mining Development Minister, Dr Obert Mpofu says government intends to make legal the trade of gold to allow small scale miners to trade more freely and deliver gold to Fidelity Printers and refineries through the issuing of permits and regulating certain activities in the industry.

"There was rampant smuggling as a result of tight instruments on gold, so this development aims at reducing this trend," said Dr Mpofu.

Government has projected that gold production will reach 15000 kilogrammes by the end of the year and indications are that miners will reach the target.

The country is also seeking re-admission on the London Bullion market which requires annual gold production of 10000 kilogrammes per year.

Zimbabwe had been disqualified when production fell to 3000 kilogrammes.