HARARE, Jan. 29 (Xinhua) — The Zimbabwean central bank is pushing for the readmission of the country to the London Bullion Marketers Association (LBMA) and is instituting measures to ensure that miners get favorable gold prices even when the global prices have declined, a senior official said Wednesday.
Presenting the 2014 Monetary Policy Statement, Acting Governor of the Reserved Bank of Zimbabwe Charity Dhliwayo said following the designation of subsidiary Fidelity Printers and Refiners as the sole buyer and exporter of gold in the country, Zimbabwe would be in a better position to meet the LBMA threshold of 10 tons of gold per annum.
She added that the new framework would allow the country to directly export refined gold to the international market, build gold reserve buffers and resuscitate the domestic jewellery industry.
Prior to 2006, gold produced by both small scale and large scale miners exceeded 15 tons per annum but declined to less than 10 tons per annum in 2007, resulting in Zimbabwe losing its membership to the LBMA.
Since then, the country has been exporting gold through South Africa for refining.
“Furthermore, the company is working on modalities of entering into hedging arrangements which will ensure that they buy gold at favorable prices even during times when the price of gold is declining,” Dhliwayo said.
She added that more gold buying centers would be opened throughout the country to ensure access by small scale miners and to reduce cases of robbery.
The refining of gold locally was also in line with the government’s economic blueprint which encourages value addition of commodities before they are exported, she said.
Dhliwayo also urged banks to support small scale gold producers so that the country benefitted from enhanced gold production.