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Oliver Kazunga, Senior Business Reporter
THE unbundling of Fidelity Printers and Refiners is underway with 10 shareholders having acceded to taking equity at a total consideration of US$49 million.

The partial privatisation of Fidelity Printers and Refiners (FPR), which falls under the purview of the Reserve Bank of Zimbabwe, would see the monetary authority offering 60 percent of its stake in FPR to producers of the yellow metal in the country.

In the Mid-Term Budget Review Statement, Finance and Economic Development Minister, Professor Mthuli Ncube, said the unbundling would see RBZ remaining with 40 percent equity.

“The Central Bank will remain with 40 percent in the gold refinery company and 100 percent in the printing, minting and gold financing business,” he said, adding that about “10 shareholders have so far accepted to take shareholding in Fidelity Gold Refinery at a total consideration of US$49 million.”

The partial unbundling of FPR entails splitting of the company into two units — gold refining, and printing and minting units.

It is hoped that by unbundling FPR, shareholders from the private sector will be part of the decision-making process on gold trading while gold producers’ compliance levels in trading of the mineral would significantly improve.

The disposal of RBZ shares in FPR would see big mining houses securing a 50 percent stake, while the small-scale miners and FPR gold-buying agents were offered seven percent and three percent respectively.

On the disposal of some of RBZ assets, Prof Ncube said:
“The Central Bank has disposed of two of its assets, Tuli Coal and Transload (jatropha plant), to Government through the Ministry of Finance and Economic Development and the Ministry of Higher and Tertiary Education, respectively.”

Meanwhile, in the first half ended June 30, 2021, small-scale miners and primary producers’ output stood at 9,954 tonnes compared to 10,611 tonnes during the corresponding period in 2020.

In June, the country’s gold output increased by 75 percent to 2,924 tonnes from 1,668 tonnes in May on the back of incentives availed by RBZ.

Over the past three years, Zimbabwe’s annual gold output has decreased from 33,2 tonnes achieved in 2018 to 19,052 tonnes in 2020. And in 2019, stakeholders in the mining sector set a target of 40 tonnes but delivered 27,66 tonnes.

The Zimbabwe Miners Federation maintains that the 40-tonne target is still achievable if all stakeholders make collective efforts to support production and plug leakages.

Gold is one of the sub-sectors that the Government is pinning hopes on towards the US$12 billion mining strategy by 2023 launched by President Mnangagwa in October 2019.

Under the US$12 billion milestone, gold is expected to contribute US$4 billion from about US$2,7 billion contribution to the fiscus. — @okazunga