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‘Gold centres to plug leakages’

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THE government says it intends to establish Gold Service Centres this year in order to plug the smuggling of the yellow metal, which is touted as one of the major minerals to anchor the country’s economic growth.

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Addressing a post-Cabinet media briefing on Tuesday, Information minister Monica Mutsvangwa said the centres were meant to streamline and support the operations of artisanal gold miners through ensuring that they operate legally and in a safe environment.

“The Gold Service Centres provide machinery and transport to the miners, while the artisanal miners on the other hand, are expected to provide sufficient feed stock to the centres. The artisanal miners are also expected to benefit through higher returns from the processing of the feed ore they supply to the centres.

Monica Mutsvangwa, Information Minister

“The illegal artisanal mining activities are, however, causing a loss of human lives, land degradation, loss of potential revenue to the government, and hence the need to safeguard the country’s finite resources through curtailing these actions,” Mutsvangwa said.

She said the centres will be in Bubi in Matabeleland North province, Mt Darwin and Shamva in Mashonaland Central province, Silobela in Midlands and Odzi in Manicaland.

According to the Reserve Bank of Zimbabwe governor John Mangudya’s recent Monetary Policy statement, gold deliveries to Fidelity Gold Refiners (FGR) jumped from 19 052,65 kgs delivered in 2020 to
29 629,61 kgs in 2021.
“This represents an increase of 55,51 percent or 10 576,96 kgs. The increase is mainly attributable to the five-gold incentives given to those delivering at least 20kg to FGR and an incremental two percentage points for each ton delivered to FGR,” Mangudya said.

During the same period, primary gold producers delivered a total of 11 159,00 kgs, compared to 9 738,75 kgs delivered over the same period in 2020, a 14,58 percent or 1 420,25 kgs year on year growth in terms of primary producer deliveries.

Deliveries from small-scale gold producers also increased from 9 313.89 kgs during the period January to December 2021 compared to 18 470.61 kgs during the same period in 2020. This represents a year-on-year growth of 98,31 percent or 9 156,72 kgs.

Mutsvagwa said the government took great exception to some influential and government officials who are involved in illegal mining activities.

“These should desist from such activities forthwith. Government would take stern action against all those involved. Cabinet resolved on the institution of the following measures to ensure that the Gold Service Centres achieve the intended objectives – that the Mines and Minerals (Amendment) Bill be finalised as a matter of urgency and that the formalisation of all mining operations be expedited to enhance accountability and ease of monitoring by environmental management authorities,” she said.

The other measures include funding – be provided including through Special Drawing Rights (SDRs) for the operationalisation of Gold Service Centres as approved by Cabinet, with the participation of the private sector being vigorously pursued.

“..that mobile Gold Buying Centres be established starting with four immediately; and that law enforcement measures be consolidated and that adequate resources be provided to conduct the necessary operations such as Operation Chikorokoza Ngachipere/Isitsheketsa Kasiphele/No to machete-wielding gangs,” said Mutsvangwa.

Zimbabwe’s mining sector, especially the extraction of gold, has lately been characterised by illicit leakages of gold and it is believed the establishment of gold centres could help restrict obscure movement of the yellow metal.

 

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