Gold deliveries to Fidelity Gold Refiners (FGR) jumped from 19 052.65 kgs delivered in 2020 to 29 629.61 kgs delivered in 2021, driven by a 5% incentive, Great Dyke News 24 reports.
This is according to the monetary policy statement released by Reserve Bank of Zimbabwe Governor Dr. John Mangudya. This represents an increase of 55.51% or 10 576.96 kgs of gold.
“The increase is mainly attributable to the 5% gold incentive given to those delivering at least 20kg to FGR and an incremental of 2 percentage points for each ton delivered to FGR.
“During the same period, primary gold producers delivered a total of 11 159.00 kgs, compared to 9 738.75 kgs delivered over the same period in 2020. This shows a 14.58% or 1 420.25 kgs year on year growth in terms of primary producer deliveries,” reads the statement.
The Governor indicated that small-scale producers outperformed large-scale producers as they delivered the bulk of the gold to FGR.
“During the same period, primary gold producers delivered a total of 11 159.00 kgs, compared to 9 738.75 kgs delivered over the same period in 2020. This shows a 14.58% or 1 420.25 kgs year on year growth in terms of primary producer deliveries.
“Deliveries from small-scale gold producers also increased from 9 313.89 kgs during the period January to December 2021 compared to 18 470.61 kgs during the same period in 2020. This represents a year-on-year growth of 98.31% or 9 156.72 kgs.
” For the year 2021 small-scale producers contributed 62% of the total gold deliveries to FGR compared to 49% in 2020, whereas primary producers contributed 38% in 2021 which was less than the 51% which was achieved in 2020,” he said.
Mines and Mining Development Minister Winston Chitando is optimistic about a further increase in gold output, indicating a target of 50 tonnes this year.
Gold is a key foreign currency earner for Zimbabwe, accounting for over 70 percent of the nation’s annual hard currency inflows.