Gold Deliveries To Fidelity Refinery Decline 22%
Zimbabwe’s gold deliveries fell by 22 per cent in February to 1.85 tonnes compared to the 2.38 tonnes delivered in January mainly due to reduced output from small-scale producers.
The small-scale miners normally account for about 60 per cent of the country’s total gold output.
Large-scale producers delivered more to Fidelity Gold Refinery (FGR) last month compared to their small-scale counterparts.
According to FGR, large-scale producers delivered 988.7kg, which translates to 53 per cent of the total for the month under review.
The small miners accounted for the balance of 47 per cent of the yellow metal output at 864.3 kg, representing a 31.76 per cent decline from 1266.51 kg in January.
Mines and Mining Development Permanent Secretary, Pfungwa Kunaka told The Herald that said the shift in the FGR payment modalities for gold miners, who were no longer receiving 100 per cent USD, resulted in the shift by some producers to lithium, which negatively impacted gold production. Kunaka said:
The shift in FGR payment conditions deterred deliveries, in about three weeks we noticed significant declines in deliveries, but that is now sorted.
We have also witnessed a trend where small-scale miners are rushing to lithium mining, given that it is easier to extract, but the slump in lithium prices has seen them return to gold mining.
Young Miners Foundation (YMF) chief executive officer, Payne Kupfuwa, said:
As you know Fidelity used to pay gold deliveries 100 per cent in United States Dollars, but they (FGR) had reverted to paying 75 per cent USD and the remaining in local currency, this could have affected gold deliveries in February.
The situation has since been corrected and miners are now receiving their 100 per cent payment in US dollars.
Gold is Zimbabwe’s single largest export by value, followed by platinum, together they account for over half of the country’s export revenue.
More: Pindula News
