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Issuance of gold buying licenses not suspended – Fidelity

By Business Reporter – Thursday 11 June 2020

LOCAL – HARARE (Mining Index) – FIDELITY Printers and Refiners (FPR) has dismissed as false claims that the state-owned gold buying centre had stopped issuing gold buying licenses to private individuals and companies wishing to trade in gold.

Prospective traders who visited FPR last week said they were informed Fidelity had suspended processing gold buying licences.

Responding to questions, FPR general manager Fradreck Kunaka said the issuance of gold buying licenses is on-going and is dependent on the successful vetting process of those who apply.

“As Fidelity Printers and Refiners we are still issuing gold buying licenses to individuals and Companies who meet the expected requirements,”

“Following the press statement release of the new Gold Trading Framework on the 26th of May, 2020, an Agency Agreement with FPR was introduced. This contract agreement clearly spells out the terms and conditions under which the agent shall operate,” said Kunaka.

Following recent claims that gold delivered to Fidelity was not being sold to generate foreign currency, but is being channelled towards servicing existing debts owed to foreign countries, Kunaka commented;

“We are not privy to the use of gold in servicing debts thus we direct you to the Ministry of Finance and Economic Development,” he said.

Last month, FPR temporarily ran out of USD to pay for gold delivered by miners citing lack of flights due to COVID-19 to bring in foreign currency into the country.

Zimbabwe has in recent years been importing foreign currency to service its local needs. In 2018, the central bank had cash imports of US$100 million per month.

In 2014 government cancelled all private gold buying licences and directed artisanal and small-scale miners (ASM) to sell their gold through Fidelity after noting some permit holders were abusing the facility. In December 2018, FPR issued 21 gold buying licences to the Zimbabwe Miners Federation (ZMF) to boost gold deliveries. ENDS//

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