Editor: Gold retention review – The light at the end of the tunnel

Fidelity Printers and Refiners boss Mr Fradreck Kunaka confirmed that Zimbabwe’s most popular Mining institution will soon review the price of the yellow metal as part of a broader scope to attract more deliveries into the formal channels.

(Extracted Editor’s note from Miningnewsweek 13 July 2020 Edition)

If done right this should be the correct remedy for curing gold leakages that have according to Finance Minister Professor Mthuli Ncube seen Zimbabwe losing 30 tonnes (30 million grams) to 34 tonnes (34 million grams) yearly. With yesterday’s international going rate of US$58.05, 30 tonnes is US$ 1,7 billion whilst 34 tonnes is a whooping USD1,97 billion that the country is losing through smuggling mainly to Dubai via South Africa yearly.

Deploying the Gold Mobilisation Task Force to counter gold leakages whilst producers are clearly unhappy with the current pricing is a total waste of State resources and a five-star recipe for collusion and corruption. Getting the buying price right will automatically fix challenges in the Industry.

We hope the authorities get the gold retention prices right this time which will be a huge leap in the right direction of President Mnangagwa’s 12 Billion Mining Industry by 2023.

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