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Gold hit hard by forex challenges

Gold hit hard by forex challenges

May 16, 2018

 

The gold mining sector which is the country’s largest foreign currency earner, has been hit by foreign currency shortages that hamper productivity, the Zimbabwe Chamber of Mines has said.

 

The organisation’s president, Mr Batirai Manhando, said the allocation of foreign currency by the central bank remains a challenge as the funds are not adequate to sustain the gold mining operations.The Reserve Bank of Zimbabwe retains 100 percent of the foreign currency earned from gold mining, which it then allocates to companies including gold mining companies.

“In terms of foreign currency shortages, you will be aware that the latest policy statement by the (Reserve Bank of Zimbabwe) governor is that the bank has revised the threshold, which is retained by different mineral sectors.“But as we speak we still have gold being taken by the RBZ and the companies are then allocated forex by the apex bank,” said Mr Manhando.“We are having problems here and there in terms of allocations specifically the gold sector but we have always engaged the governor to ensure that the mines operate.”Gold mining is one of the leading sources of investment and the largest foreign currency earner in the country. Last year the country had a gold output of just over 24 tonnes. The outcry by the Chamber of Mines, a grouping of large scale miners, comes as Government intends to ramp up gold production in the next five years. The Ministry of Mines and Mining Development wants annual production to be increased to 75 tonnes in the next five years.

 

Source: http://www.chronicle.co.zw/g