Miners urge Fidelity to review gold price

 Miners urge Fidelity to review gold price
Published: 29 April 2019
Small-scale gold producers in Masvingo province have welcomed the recent price increase of the yellow metal on the world market and pleaded with Fidelity Printers and Refiners (FPR) to localise the increase to boost production in the country's mining sector.

Prices for spot gold have increased by 0,1 percent an ounce on the global market, after hitting their lowest price of US$1 265, 90 last year.

For the past four months, world gold producers have been singing the blues as the mineral's prices remained at an all-time low given the strength on the United States dollar.

The United States gold has also gained by the same margin and rose to US$1 274, 70 an ounce. Zimbabwe Mining Federation national committee member Mr Rodrick Mumbire said it was refreshing to note that gold was now fetching more money on the international market.

He said they also expected the local market to respond positively to motivate producers to deliver more gold.

"We welcome the increase of gold price on the world market. The prices of gold are determined by the world market and we hope Fidelity Printers and Refiners will respond positively by implementing these increases for the benefit of gold producers," said Mr Mumbire.

He challenged FPR to assist small-scale gold miners in Masvingo to access loans from financial institutions to enhance their capacity and output as a province.

"We are appealing to Fidelity Printers and Refiners to consider buying our gold at an average of US$35 per gramme, but these prices fluctuate depending on the market forces," said Mr Mumbire.

"While we hail them (FPR) for buying our product, we are appealing to the company to assist us in accessing loans. Small-scale miners should be exempted from collateral security demands when applying for loans. "Our view is that the applications should be based on one's potential to produce."

Mr Mumbire said the Ministry of Mines and Mining Development had made available services of geologists to assist small-scale miners to evaluate the amount of minerals within their concessions. He said it was prudent for financial institutions to use that as risk cover instead of asking for miners' assets.

"We are of the view that Fidelity Printers and Refiners should assist us in this regard," he said.
National Youths in Mining patron Mr Benjamin Mazarire said an increase in gold prices would not only add value to the mining sector, but boost gold output and avoid side marketing.

"We are happy if we hear that gold prices are increasing," he said. "This obviously will motivate the small-scale miners who are selling their produce to the formal market.

"This will also help minimise issues of side marketing considering that many people will be motivated to deliver the yellow metal to Fidelity Printers and Refiners." Mr Mazarire urged Government to revisit the foreign currency retention rate of 55 percent which he said was not sustainable given the cost of producing gold.

Government, through the Reserve Bank of Zimbabwe (RBZ), has slashed the foreign currency retention on gold from 70 percent to 55 percent starting November last year, causing an outcry among gold producers.

Small-scale miners contribute more than 60 percent of national gold deliveries to Fidelity Printers and Refiners, but in the last quarter of last year the deliveries dropped to 20 percent, chiefly due to the reduction of foreign currency retention.
- the herald
Tags: Miners,


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