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Oliver Kazunga, Acting Business Editor
ZIMBABWE’S gold deliveries continued to decline in 2020 dropping by 31 percent to 19,052 tonnes due to a host of reasons including smuggling and subdued performance by producers in the sector.

Official figures from Fidelity Printers and Refiners (FPR) — Zimbabwe’s exclusive buyer of gold, show that deliveries declined to 19,052 tonnes last year from 27,66 tonnes a year earlier.

In 2018, the country delivered 33,2 tonnes of the yellow metal.

According to the FPR, the small-scale mining sector, which had in recent years been producing the bulk of the gold, last year delivered 9,347 tonnes compared to 9,738 tonnes by the primary producers.

In 2019, small-scale miners delivered 17,478 tonnes while large mining houses produced 10,181 tonnes.

Zimbabwe earns much of its foreign currency from mining, with gold being one of the major contributors.

However, the sector is facing a myriad of challenges including delays in payment for deliveries, power cuts, and smuggling of the mineral to countries such as South Africa and the United Arab Emirates.

Authorities estimate that between 30 and 35 tonnes of the yellow metal are being smuggled annually.

Under the Second Republic, led by President Mnangagwa, the Government has of late been engaging mining firms with a view to forge a common understanding and ensure the sector makes optimal contribution to medium term national economic growth prospects.

In this context, Government and the mining houses have discussed issues to do with value addition, beneficiation, formalisation of informal gold mining, long-term capitalisation of mines as well maintaining viability of gold mining.

In a written response to Business Chronicle last week on what measures could be put in place to improve deliveries to the country’s gold buyer, which falls under the purview of the Reserve Bank of Zimbabwe, FPR general manager Mr Fradreck Kunaka said:
“The plans can only be crafted based on the business model of the unbundled entity as was publicly announced.”
Last month, the Reserve Bank announced plans to unbundle FPR into two entities and divest out of mining firm, Tuli Coal (Pvt) Limited.

Under the framework Fidelity Printers will be split into two business units — gold refining and printing and minting.
Over the past seven years, the apex bank has planned to sell its 70 percent stake in the mining firm as it seeks to concentrate on its core business.

The mining sector remains one of the key industries expected to anchor the revival of an economy suffering from depressed productivity and foreign currency shortages.

In October 2019, the Government unveiled a strategic roadmap to propel Zimbabwe’s mining sector to a US$12 billion industry by 2023.

Under the US$12 billion mining roadmap, gold is expected to contribute US$4 billion. — @okazunga.