The country’s sole gold buyer and refiner, Fidelity Printers and Refiners sees joint ventures with gold producers and an investment in mining rather than gold buying being among a raft of measures to increase output in the yellow metal.
BY NDAMU SANDU
Gold output has been on the rise from 4 tonnes in 2009 to 13,9 tonnes recorded last year. In written responses to NewsDay, Fidelity said the gold sector had a number of opportunities that needed to be tapped into to increase output. Fidelity said there was need to encourage “potential investors interested in participating in the gold supply to enter at the mining level as buying is currently oversubscribed”.
It said national production was influenced by exploration work, investment in mining equipment, availability and cost of working capital and power.
Fidelity said syndication of artisanal and small-scale miners with appropriate equipment and technology would also help in increasing output.
“Financial institutions need to be persuaded to consider funding such groups, thus ensure funds are directed towards productive areas,” Fidelity said.
Fidelity said the increase frequencies of extraordinary gold finds indicated a high gold potential for the country and it “continues to explore ways of playing a key role in the gold sector to sustainably increase gold production”.
The country’s sole gold buyer and refiner said the formalisation of artisanal and small scale miners would enhance gold flows from those previously operating outside the system. The ministry of Mines and Mining Development is working on a programme to take on board artisanal and small scale miners.
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“The current law precludes FPR [Fidelity] from buying gold from unlicensed sources,” it said.
