LIVINGSTONE MARUFU
A deal to unbundle the country’s sole buyer and marketer of the gold, Fidelity Printers and Refiners (FPR),is shrouded in uncertainty amid revelations the government has not moved an inch, more than six months after the proposal was announced, Business Times can report.
Local miners this week expressed growing concern that the government might renege on its earlier plan.
Zimbabwe Miners Federation (ZMF) chief executive officer, Wellington Takavarasha this week told Business Times that no progress has been made since pronouncements were made by the governor of the Reserve Bank of Zimbabwe (RBZ) last year.
“Politics is affecting the unbundling of FPR, that’s all it’s just politics surrounding the delays,” Takavarasha said.
The Chamber of Mines of Zimbabwe chief executive officer, Isaac Kwesu, said the big mining houses were in the dark on the progress of the FPR unbundling issue.
“I’m not aware of anything concerning the FPR unbundling, for now, we don’t have any say but when our members fail to sell their gold that is where we come in,” Kwesu said.
Furthermore, a source close to the development who requested anonymity said the FPR unbundling was just a talk show as those close to the corridors of power would not let their dominance end abruptly.
“The syndicates have the grip in the gold buying and refining business in the country as they have the influence on the current FPR hence the unbundling won’t just happen like that.
“If it happens, they are recruiting new people whom they have an influence on,” the source said.
But RBZ governor, John Mangudya, said various firms were concluding their findings to map the way forward.
“That was a proposal and the potential shareholders have the time to decide on what we offered to them. We are waiting for them to make some decisions and we can’t rush them,” Mangudya told Business Times.
Last year, Mangudya announced plans to unbundle the company into two units—gold refining and printing and minting units.
Under the proposal, RBZ wants to retain the printing and minting business but would dispose of its 60% shareholding in the gold refining unit.
The big mining houses have been offered a 50% stake, while the small-scale miners and FPR gold buying agents were offered 7% and 3% respectively.
The proposal follows the model of Rand Refinery, South Africa’s biggest refinery, which is owned by the five largest gold miners—AngloGold Ashanti, Gold Fields, Harmony, Sibanye Gold and DRDGOLD.
But, it appears there is no progress in the proposed unbundling of FPR, a move which has rattled investors who are now reluctant to fund gold projects without proper knowledge of the timelines of the privatisation processes.
The delays have significantly contributed to the decrease in gold deliveries as investors are not happy with the continuous participation of FPR as a player.
