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ZMF NewsNews

US$ shortages expected to normalise next week

“Kindly bear with FPR whilst they are making frantic efforts of ensuring that all the gold deliveries are paid for. By next week, we expect the situation to have normalised.”

By Business Reporter – Friday 22 May 2020

LOCAL – HARARE (Mining Index) – UNAVAILABILITY of the United States Dollar (US$) to pay gold miners is expected to normalise next week, the Zimbabwe Miners Federation (ZMF) revealed yesterday following a meeting with Fidelity Printers and Refiners (FPR).

Fidelity ran out of the greenback to pay for gold deliveries about a fortnight ago.

Miners receive 55 percent of their gold deliveries to FPR in foreign currency with the remaining 45 percent payable in local Zimbabwean dollars.

“Pursuant to our meeting with FPF today, kindly be advised that FPR relies mostly on Foreign Exchange brought in by air transport. Due to the COVID-19 pandemic, there has been a limited number of flights into the country and this has adversely affected their operations,”

“Kindly bear with FPR whilst they are making frantic efforts of ensuring that all the gold deliveries are paid for. By next week, we expect the situation to have normalized,”

“Once again, as ZMF we sincerely apologize to our hard-working miners who have been adversely affected by this phenomenon,” said ZMF Chief executive officer Wellington Takavarasha.

Last week, Fidelity’s general manager Fradreck Kunaka admitted to cash scarcities saying,

“The Covid-19 pandemic which has had negative effects that have affected the operation to full capacity of the whole economy has not spared the inflow of foreign currency into the country. The USD is imported and with the lockdown, the operation of flights has been affected, with reduced movement, cash has not been received as frequently to satisfy the demand.”

Miners who delivered their gold to FRP provincial buying centres within the past fortnight said also confirmed Fidelity had no USD to pay for gold. ENDS// www.miningindex.co.zw

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