RBZ collects close to a ton of gold from royalties
The Reserve Bank of Zimbabwe (RBZ) has collected close to a ton of gold reserves since implementing a law that requires mining companies to pay a portion of their royalties using the precious metal.
According to RBZ Governor Dr John Mangudya, the Central bank has accumulated 793 kilograms (25,000 ounces) of gold reserves as a result.
The accumulation of gold reserves is seen as a strategic move by the authorities in Zimbabwe, who are considering using gold to stabilize the nation’s struggling currency and address ongoing exchange-rate volatility. The introduction of the royalties measure in September 2022 by Zimbabwe’s finance ministry aims to bolster the country’s mineral reserves.
Gold in Zimbabwe is found in all districts and 60% of the precious mineral is submitted by Artisanal and small-scale miners. The country is also known for having the world’s third-largest reserves of platinum. The country also mines diamonds, nickel, chrome, lithium, and coal.
Among the mining companies operating in Zimbabwe are subsidiaries of Sibanye Gold Ltd., Impala Platinum Ltd., and Anglo American Platinum Ltd. These companies play a significant role in the country’s mining sector and contribute to its overall mineral wealth.
With the accumulation of gold reserves and the potential use of gold to support the currency, Zimbabwe is taking steps to strengthen its economic stability and leverage its rich mineral resources for long-term growth and development.