Fidelity increase forex payment to miners

26 May, 2020 - 13:05 0 Views
Fidelity increase forex payment to miners

The Sunday News

Dumisani Nsingo, Business Reporter

THE country’s sole gold buyer, refiner and exporter, Fidelity Printers and Refiners (FPR) has reviewed upwards its foreign currency component payment for gold deliveries by miners from 55 percent to 70 percent.

In a statement, FPR chief executive officer Mr Fradreck Kunaka said with effect from today (Tuesday) the country’s gold trading framework payment would be in 70 percent United States dollars and 30 percent in local currency.

“Gold producers shall be paid under a 70/30 payment arrangement scheme in terms of 70 percent of the gold sale proceeds shall be paid int the producer’s Nostro account and the balance of 30 percent shall be paid in local currency at the ruling exchange rate into the producer’s ZW$ account,” he said.

Prior to the latest review, gold producers were being paid 55 percent in US dollars and 45 percent in local currency.

Mr Kunaka said small-scale gold buying agents and artisanal producers shall be paid in cash at a flat price of US$ 45 per gramme of fine gold.

He also noted that large gold buying agents must have a mining operation producing a minimum of 50 kilogrammes fine gold per month to qualify for FPR agency permit.

“Small-scale gold buying agents will have to enter into an Agency Agreement with FPR, which contract shall clearly spell out the terms and conditions used which the agents shall operate. All persons wishing to continue as FPR gold buying agents are advised to contact Fidelity Printers and Refiners to regularise their operations in-line with the new gold trading framework,” said Mr Kunaka.

He said efforts to curb leakages of the yellow metal are being intensified.

“FPR and the National Gold Monitoring Teams are enhancing surveillance to ensure that all gold is sold through FPR in-line with the country’s regulations,” said Mr Kunaka.


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