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Gold deliveries expected to reach 35 tonnes this year

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Gold deliveries expected to reach 35 tonnes this year

Gold deliveries expected to reach 35 tonnes this year

Story by Farai Gwaze

ZIMBABWE is on track to achieve the target of over 35 tonnes of gold by the end of the year after deliveries for the yellow metal to Fidelity Gold Refiners reached 26 tonnes last month.

Fidelity Gold Refiners General Manager Mr Peter Magaramombe has expressed optimism that the rebound in gold deliveries as of October this year has set the tone for achieving this year’s target.

“In October 2023 there was an increase of gold deliveries by 20 %, if we compare with September 2023. In October we received a total of 3.7 tonnes against 3.1 tonnes we received in September. As at 31 October 2023 the total gold deliveries amounted to 26.2 tonnes and if we maintain the October trajectory of 3.7 tonnes, we are likely to end the year with a total of plus or minus 35 tonnes of gold deliveries,” he said.

The government has also realigned the foreign earnings retention to 75 % in a move expected to ensure stability in the sector.

He added, “In terms of the new government policy at the moment, in terms of payment of Gold and the retentions, we are now paying everyone, in terms of small-scale miners and large-scale miners 75 % in USD and 25 % in local currency. In my view, it is quite early to comment in terms of the policy position in terms of its impact because we are only 10 days after the announcement of the policy. Hence, we need to give it time and then we’ll be able to comment on the policy and its exact position in terms of what will be happening on the ground. There has been no significant change of deliveries that we can speak of.”

Central bank data shows that gold is Zimbabwe’s main foreign currency earner.