Zim’s gold rallies as diamonds lose shine

Zim’s gold rallies as diamonds lose shine

HARARE, October 13 (The Source) – Zimbabwe’s gold output is up 16 percent to 15, 3 tonnes in the nine months to September compared to 13, 1 tonnes last year, the central bank has said.

Gold production in the south African nation has been on an upward trajectory since government decriminalized artisanal mining and embarked on an aggressive collection strategy, which saw the country’s sole buyer of gold Fidelity Printers set up buying depots across the country.

Speaking at the launch of the national economic competitiveness report, Reserve Bank of Zimbabwe deputy director of Economic Research, Nebson Mpanga on Thursday said gold production is expected to increase even further following the introduction of a 5 percent incentive scheme to miners.

Reserve bank governor John Mangudya in May announced that miners would receive a 5 percent incentive on export receipts to spur exports.

“Gold deliveries to Fidelity compared to last year where we had 13,1 tonnes, have increased to 15,3 tonnes from the central bank we are confident that this export incentive is bearing some fruit although we are yet to see the impact in the manufacturing sector,” he said.

The country is targeting output of 24 tonnes in this after achieving 21 tonnes in 2015.

Speaking at the same event, Mines Minister Walter Chidhakwa said production in the diamond sector remained depressed.

“Diamonds are doing just about 95,000 to 100,000 carats per month which is bad we should be doing about 300, 000 to 350, 000 carats per month,” he said.

“Mining sector is giving us as of last week $45 million a week but if it was really performing it would give us between $60 and $70 million a week.”