BULAWAYO - Zimbabwe will continue to be banned from the London Bullion Market (LBM) as a result of the continued failure of the country to produce the required target gold output to be a member.The LBM is a wholesale market for the trading of gold and silver. Trading is overseen by the Bank of England and members are required to produce a minimum of 10 tons of gold or silver per year.
Last year, Zimbabwes Fidelity Printers and Refineries, a subsidiary of the Reserve Bank of Zimbabwe and sole buyer of gold from miners in the country was expelled after failing to hit this target.
Only one ton has been produced by the countrys miners in the first six months of 2009, diminishing any hopes of a quick return to the LBM. There was little gold mining activity during this period as most operations were placed under care and maintenance.
“But our hope is that production will now increase, as since mid-July most gold mining operations were producing,” said the Chamber of Mines in a statement.
The Chamber called for funding support to restart operations and raise gold production capacity to optimum levels. “The recovery of the sector could be significantly faster if financial support could be secured,” the statement said.
Post published in: Economy