FGR’s Full Supply Chain Traceability System Set to Combat Gold Smuggling
The country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), is taking significant strides to ensure the integrity and transparency of its gold supply chain.
by Rudairo Mapuranga
Speaking at the gold mobilization deployment workshop held at Cresta Jameson Hotel in Harare on Monday, FGR General Manager Mr Peter Magaramombe, highlighted the company’s initiatives to promote responsible sourcing and combat the pervasive issue of gold smuggling.
Full Supply Chain Traceability System
One of the cornerstone developments at FGR is the implementation of a system that allows for full supply chain traceability. “Fidelity Gold Refinery is developing a system that allows full supply chain traceability. The system allows for real-time monitoring from bullion weighing by the producers,” stated Mr. Magaramombe.
This system, expected to go live by September 30, 2024, will enable detailed tracking of gold from the point of production through to its final market destination.
This real-time monitoring is crucial for verifying the source of gold and ensuring compliance with ethical standards. By integrating this advanced system, FGR aims to enhance transparency and accountability across the supply chain, making it significantly harder for illegally sourced gold to enter the market.
Increasing Gold Deliveries
In his speech, Mr Magaramombe also reported a notable increase in gold deliveries.
“For the month of April, gold deliveries to Fidelity recorded an increase of 32% from the March 2024 position of 1.8 tons to close at 2.4 tons,” Magaramombe said.
This surge reflects the effectiveness of FGR’s strategies and the growing compliance among miners with the responsible sourcing policies implemented by the gold buyer and exporter.
Combating Gold Smuggling
Zimbabwe has long struggled with gold smuggling, which deprives the nation of substantial revenue. The government and FGR are working diligently to minimize this illegal activity. Magaramombe emphasized the importance of responsible sourcing in this effort.
“Responsible sourcing means the incorporation of ethical, sustainable, and socially conscious principles into sourcing, procurement, and overall supply chain management practices during the sourcing of gold from various suppliers,” he explained.
FGR’s approach includes rigorous customer due diligence, mandatory record-keeping, and ensuring funds used in transactions are from legitimate sources. These measures align with national regulations on anti-money laundering and crime prevention.
Training and Policies
FGR has also prioritized training for its gold-buying agents. In April 2024, the company conducted a comprehensive training workshop focusing on responsible sourcing practices. This training covered aspects such as proper record-keeping, customer due diligence, and understanding the legal implications of non-compliance.
Moreover, FGR has established a robust Responsible Sourcing Policy, which guides all stakeholders in ensuring that gold is mined and traded ethically. This policy is publicly available on FGR’s website and underscores the company’s commitment to sustainable and conflict-free gold sourcing.
Government Collaboration
The government’s role in supporting these initiatives is pivotal. By collaborating with FGR and other stakeholders, the government ensures that policies and regulations are effectively enforced, thereby strengthening the fight against gold smuggling.