The Sunday News
Nkosilathi Sibanda, Business Correspondent
FIDELITY Printers and Refiners (FPR) recorded a rise in gold deliveries in March amid reports of a shortage of consumables.
The country’s sole gold buyer released figures that show that last month, miners delivered 1,8 tonnes of the yellow metal, an increase of 54,57 percent compared to 1, 117 tonnes in February. Artisanal and small-scale gold miners remain in the lead, delivering more gold to the formal market.
Small scale miners’ confidence in the formal gold trade market was attributed to the recent move by FPR to put a yard stick on gold payments against the global London Bullion Market Association (LBMA). This saw local miners getting paid in United States dollars for their produce. The LBMA is the world’s authority for precious metals that also sets standards that define how precious metals are refined, as well as traded worldwide.
While the increase in deliveries was commendable, stakeholders in the gold sector say the industry still has to plug loopholes of dealings in the black market. Of concern has also been the shortage of equipment used by miners. The miners say that deliveries could be higher than the recorded figures, had they not been subjected to stoppages due to delayed deliveries of equipment and some consumables.
Much of the equipment is shipped from Europe, China and other Asian countries and Covid-19 lockdowns at the start of the year were to blame for the delays in deliveries. Zimbabwe Miners Federation spokesperson Mr Dosman Mangisi said the impact of Covid-19 was severe for the miners.
“It is understandable that the global shutdown of markets heavily affected the miners. Since last year the industry has seen a sharp shortage of critical equipment such as capped fuses, an essential component of mining,” he said.
