By Mining Reporter – 19 December 2018
HARARE (Mining Index) – SEVENTY percent of gold buyers in Zimbabwe cannot be located, exposing loopholes that not all the gold produced is going through formal channels as prescribed by the Reserve Bank of Zimbabwe (RBZ).
Mines and Mining Development Deputy Minister Polite Kambamura revealed the developments saying gold buyers and millers are targeting small-scale and artisanal miners, with 70 percent of gold buyers choosing to be anonymous.
“Over 70 percent of gold buyers could not be located within their areas. They go to a miller, after milling, they give an address or their camp site, but when we try to go to find their location, 70 percent could not be found and over 90 percent did not keep records of their transactions, neither are they submitting returns for analysis to Fidelity Printers and Refineries (FRR) or the Ministry of Mines and Mining Development,” he said.
This is despite the fact that gold output surpassed the targeted 30 tonnes by end of 2018, with 31.6 tonnes having been delivered to FPR as at October 2018, with small-scale and artisanal miners contributing 21 tonnes.
Zimbabwe Miners Federation (ZMF) President Henrietta Rushwaya last week disclosed that Zimbabwe is losing an estimated US$50 million every month in gold leakages as a result of the current dual payment system by government being done in both local and foreign currency of 30:70 percent respectively, which miners are not satisfied with.
Rushwaya said government need to consider paying small-scale miners 100 percent in foreign currency for gold delivered FPR to curb smuggling and leakages.
Mines and Energy Parliamentary Portfolio chairperson Temba Mliswa also called on government to reconsider its position and allow miners to enjoy 100 percent foreign currency retention. ENDS//