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RioZim owed US$2 million for gold deliveries

By Business Reporter – Tuesday 16 June 2020

HARARE (Mining Index) – MINING concern, RioZim says it is owed US$2 million by the Reserve Bank of Zimbabwe (RBZ) for gold delivered to Fidelity Printers and Refiners (FPR).

RioZim has cited delays in receipt of gold proceeds from the apex bank.

“Further, even the receipts for the gold delivered to Fidelity Printers and Refiners are being delayed

inordinately.”

“Currently, the Company is owed USD 2,460,472 and ZWL 65,477,982. The ZWL portion of the Company’s receivables from RBZ have lost almost all their purchasing power in the meanwhile,”

RioZim says it is selling 30 percent of its USD at a rate of ZW$25:US$1 while the market and its suppliers are pricing goods in excess of ZW$80:US$1.

“This payment mechanism essentially means that the Company is getting less than 80% for its gold production compared to the international market price,” said RioZim.

“These delays, coupled with the current policies whereby the Company is losing over 20% value of its gold, and the extremely expensive local market for its consumables and spares, has made it impossible for the Company to procure the necessary consumables required to continue production of bullion,” said RioZim.

Last month, Fidelity ran out of USD to pay for gold deliveries citing the effects of the Covid-19 pandemic which affected foreign currency inflows 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,” Fidelity’s general manager, Fradreck Kunaka. ENDS// www.miningindex.co.zw

 

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