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LocalNews

Fidelity runs out of US$

By Business Reporter – Thursday 14 May 2020

LOCAL – HARARE (Mining Index) – FIDELITY Printers and Refiners (FPR) is said to have run out of foreign currency to pay for gold deliveries.

Miners receive 55 percent of gold delivered to Fidelity in foreign currency, mostly in United States Dollars (USD) while the other 45 percent is payable in local Zimbabwean currency.

Reports of foreign currency shortages at the state-owned gold buyer come after miners in areas like Chinhoyi have delivered gold to their local FPR buying centre and were informed of unavailability of the greenback.

“Does anyone know what is happening at Fidelity?  They have no USD since Monday,” asked one miner in Chinhoyi.

Those who attempted to deliver gold at some buying centres revealed Fidelity only has the local bond notes and has not been paying for gold in USD since Monday. Miners say they were however advised the USD will be available from Monday next week.

“We are also waiting to receive ours, they only have bond notes. But we were told they will be having the USD on Monday,” said female miner.

There is fear that unavailability of the greenback at FPR may fuel black market trading to unlicensed gold barons.

“Fidelity, kindly save the situation. We want more gold to be channelled through government reserves. We need to restore miner confidence,” said a mining expert.

Gold deliveries to Fidelity for the first quarter of 2020 decreased to 5,721.71 tonnes relative to 6,523.49 tonnes delivered in the same period in 2019. ENDS// www.miningindex.co.zw

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