By Daniel Itai.
South Africa. (News of The South) – Zimbabwe is losing tonnes of gold per year, as a result of local currency renumeration. This has seen local miners resorting to South Africa where they are paid more and in foreign currency.
Regardless, selling the gold to South Africa is not permitted by the government. Zimbabwe’s sole gold buyer Fidelity Printers and Refiners has not been receiving many gold sellers even though the mining industry is seemingly growing.
According to Zimbabwe’s Finance minister Mthuli Ncube, this has resulted in close to 34 tonnes of gold being smuggled to South Africa.
“When we spoke to our colleagues in South Africa we saw a jewellery shop and they said that’s all your gold from Zimbabwe. This is in Cape Town, but it’s not sitting in any of our statistics in Zimbabwe,” said the minister.
Ncube reiterated that leakages have been depriving the country of foreign currency earnings. He said the state would tighten laws to have the gold refined in Zimbabwe.
In February this year, the Reserve Bank of Zimbabwe (RBZ) established the 55 percent forex retention threshold, where 45 percent of miners’ earnings are paid in local currency.
Ncube said, he will conduct a discussion with RBZ governor John Mangudya, on the gold output and retention percentages to encourage gold miners to sell their gold through proper channels.
Comments
About Author
