Breath of life for mining

HARARE - Zimbabwe's central bank has reviewed the gold support price by over 600% to match international prices and interbank rates in a move that could breathe life to the ailing mining industry.

The gold support price was reviewed by 628% to an average of $5,1 billion a gram from $700 million following a meeting between central bank officials and stakeholders in the mining sector last Tuesday.

Hard-pressed miners were complaining that $700 million was no longer viable in the face of galloping inflation resulting in the downsizing of operations and a stop in operations due to lack of funds to sustain ever-rising operational costs.

Wellington Takavarasha, Zimbabwe Miners’ Federation chief executive confirmed that the Reserve Bank of Zimbabwe (RBZ) had reviewed the gold support price.

The gold support price has been reviewed to match international prices. For example, the international price was around US$980 per once which when converted per gram gives us an average of $5.1 billion,” Takavarasha said.

No comment could be obtained from the RBZ.

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