ZIMBABWE has experienced increased gold production mainly driven by small-scale miners despite the fall in gold prices on the international market, a new Africa Development Bank (AfDB) report has said.
By Our Staff
AfDB said gold mining firms have been able to increase output because of incentives offered by government through reduction in royalty fees and presumptive taxes for small-scale operators.
Total gold deliveries increased by 11,60% to 1268,41 kg in October 2014 compared to the same period in 2013.
Deliveries by primary producers decreased by 8,04% to 838,22 kg in October 2014, whilst deliveries by small-scale producers increased by 91,15% to 430,20 kg in October 2014.
“Cumulative deliveries to October 2014 reached 11,11 tonnes which surpassed the 10 tonnes required for the country to be reaccredited into the London Bullion Market Association. Zimbabwe was deregistered in 2008 by the London Bullion Market Association after gold production fell to below three tons,” reads the report.
“The re-admission into the London Bullion Market Association would enable the government to increase earnings from gold and also attract more investments in the gold mining sector.”
On a monthly basis, total gold deliveries decreased by 11,02% to 1268,42kg in October 2014 compared to September 2014. Deliveries by primary producers decreased by 8,49% to 838,22 kg in October 2014, whilst deliveries by small-scale producers decreased by 15,57% to 430,20 kg in October 2014.
According to the report, on the international market gold and platinum prices declined by 7% and 10,8% to average US$1 222 97 and US$1 261 33 respectively in October 2014 compared to the same period in 2013.
“The plummeting of gold and platinum prices continues to be influenced by the appreciation of the United States dollar against major currencies, owing to the tightening of the US monetary policy.
“The weakening of these precious metals prices is a cause for concern for Zimbabwe as it affects the viability of mining companies as well as growth of the overall economy hence the need for value addition and beneficiation,” reads the report.