Miners hail gold price increase

SMALL-small scale miners have welcomed Reserve Bank Governor Gideon Gono's decision to raise the support price for gold. Gono said this was the key component in reviving the mining sector - facing myriad challenges resulting in a fall of deliveries to Fidelity Printers and Refiners.  

Gono raised the support price for official gold remittances to Z$5 million per gram from $3million and said miners would be paid varying backdated amounts for deliveries made in August and September.  

Gold deliveries to the state had declined by 24, 2% from January to August.  

Zimbabwe Miners Federation (ZMF) president, George Kawonza, said the sector was delighted that Gono had finally realized that small scale miners were playing a big role in the survival of the gold sector in Zimbabwe.

Early this year the smallscale miners blasted Gono for introducing the whistleblower fund in his first quarter interim monetary policy.  

Under this fund for gold and diamonds, whistle blowers are paid 5 % of the values of actual prosecuted recoveries.  

Zimbabwe risks losing accreditation with the London Bullion Market Association (LBMA) due to signs that the country might not reach the required 10 tonnes of gold to enable the nation to sell gold directly to the international market.

Post published in: Economy

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