Fidelity bullish on gold output

LIVINGSTONE MARUFU

Fidelity Gold Refinery (FGR) is bullish gold deliveries will reach or surpass the set target of between 36 tonnes and 40 tonnes for this year driven by incentives and more funding facilities.

“We still stand by our target for the year 2022 which ranges from 36 tonnes to 40 tonnes. We believe that more facilities will start paying dividends starting this month hence an increased production is expected to meet the target,” acting GM Peter Magaramombe said.

“Remember that from October last year, we moved a gear up to average around three tonnes of gold per month.”

He said the maintenance of the 5% incentive to all gold producers who deliver 20kg encouraged miners to do formal deliveries and more ways have to be found to woo gold miners to deliver to FGR.

Magaramombe said the small-scale miners would be helped to register so that they can access the Gold Initiative Development Fund.

He said the FGR would engage the Reserve Bank of Zimbabwe and Zimbabwe Revenue Authority on addressing royalties, taxes and other statutory obligations to reduce the burden on the miners.

Miners have been complaining about punitive taxes, which gobble up to 20% of the miners’ revenue, and this has caused the small scale to run away from formalisation.

“We are engaging the RBZ, ZIMRA and the Treasury on the tax issues as miners see high taxes as one of the major hindrances to their success story. But what we have done so far is to reduce small scale miners to pay 1% of the royalties from 2% and after engagements at the highest level we will update on the developments,” Magaramombe said.

Last year, gold deliveries to FGR reached 29.6 tonnes from 19.05 tonnes the previous year.

The value of Zimbabwe’s gold export receipts went up 42% to US$1.7bn in 2021 from US$1.2bn earned during 2020 due to improved gold output and firm prices.

This year, gold is the largest foreign currency earner beating platinum and diaspora remittances.

The government has moved to provide equipment in gold centres to move towards helping the attainment of US$4bn gold export revenue.