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NewsDay

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ZMF aims to produce 10 tonnes of gold by year-end

Business
The Zimbabwe Miners Federation (ZMF) is targeting to produce 10 tonnes of gold by year-end after government managed to curtail gold leakages through setting up teams to monitor output custom milling plants, an official has said.

The Zimbabwe Miners Federation (ZMF) is targeting to produce 10 tonnes of gold by year-end after government managed to curtail gold leakages through setting up teams to monitor output custom milling plants, an official has said.

BY MTHANDAZO NYONI

Early this year, government set up teams to monitor production on a monthly basis at the over 200 licensed custom milling plants in the country to ensure that gold is delivered to the country’s sole buyer, Fidelity Printers and Refiners.

The teams are made up of officials from the Zimbabwe Revenue Authority, Reserve Bank of Zimbabwe, Ministry of Mines and the police.

In an interview with NewsDay this week, ZMF chief executive officer Wellington Takavarasha said following the setting-up of the teams, gold production in the country had improved significantly.

“Gold production by small-scale miners between January and June was 3,2 tonnes and we anticipate that by the end of year the small-scale miners are going to produce 10 tonnes of gold after the government put in place mechanisms to curtail gold leakages,” he said.

According to figures from the African Development Bank (AfDB), Zimbabwe’s total gold deliveries surged by nearly 50% to 1 546,16 kilogrammes (kg) in March 2015, from 1 040,49kg recorded in March 2014.

AfDB said the record production was driven by an increase in small-scale miners’ deliveries.

Monthly deliveries by primary producers increased by 29% to 969,63kg in March 2015, while deliveries by small-scale producers increased by 37,97% to 576,5kg in March 2015.

Gold from small-scale miners accounted for 60% of deliveries to Fidelity. It is estimated that 30% of the country’s gold production was now coming from the artisanal and small-scale producers.

Zimbabwe is estimated to be losing millions in gold leakages on a monthly basis as smugglers are taking the yellow mineral across borders in search of higher prices especially in South Africa.

However, early this year government set up teams that are monitoring production at all milling plants to ensure the mineral is channelled to Fidelity for refining.

Takavarasha said the decision by the Ministry of Mines that no one was going to renew their licence without declaring gold production would go a long way in improving output in the country.