THE Reserve Bank of Zimbabwe (RBZ) has increased the gold support price to $700 million, up from $100 million per gramme with effect from March 1. In a statement issued this week the central bank said it had reviewed the price to support the sector whose production has been declining over the past six years.
“In order to provide added support to the strategic gold sector the Reserve Bank of Zimbabwe has reviewed the gold support from $100 million to $700 million per gramme,” the Reserve Bank said.
The international gold price is currently US$950/oz. “The Reserve Bank will continue to assess the operational viability concerns of this critical sector on an on-going basis,” the bank said.
Chamber of Mines president Jack Murehwa told businessdigest this week that Zimbabwe had the potential to produce 30 tonnes of gold per year, but production had declined because mines were failing to buy production inputs due to the fixed exchange rate and failure to access their foreign currency.
“Added to that are the power outage challenges and the constant loss of skills to the world,” said Murehwa.
Last year Zimbabwe produced 6,75 tonnes of gold.