Zim gold miners get more export earnings in dollars

28 May 2020 | Business

Zimbabwe will increase the proportion of US dollars gold miners can keep from their sales, the central bank's bullion-buying arm said yesterday, yielding to pressure from producers who were pushing to retain more.

Gold is Zimbabwe's single largest foreign currency earner, and Fidelity Printers and Refiners, an arm of the central bank, has a monopoly on buying and refining all the country's production. Fidelity's general manager Fradreck Kunaka said in a statement that small-scale miners would keep all their payment in US dollars, while bigger producers would retain 70% of their money in the US currency.

Until now, gold miners received only 55% of their sales in US dollars and the balance in local currency at a fixed exchange rate.



Small producers

Smaller producers, including artisanal miners, would be paid in cash at a flat rate of US$45 per gram of gold, said Kunaka. Payments to larger producers are pegged to the London benchmark price.

Gold producers, along with the rest of the mining sector, have been lobbying to retain all their foreign currency earnings, saying the Zimbabwe dollar proportion was hurting output, which fell to 27.6 tonnes last year from 33.2 tonnes in 2018.

The Zimbabwe dollar was re-introduced last year in June, ending a decade of dollarisation. It is fixed at 25 to the US dollar, but is trading above 60 on the black market. Fidelity sells its gold chiefly to Rand Refineries in South Africa and refineries in Dubai. – Nampa/Reuters

Similar News

 

Tourism drought needn't shrivel sector

1 day - 08 July 2020 | Business

Jo-Maré DuddyWithout a coordinated, dedicated national effort – which includes a whole government and society – to remove barriers that hinder tourism growth, the local...

The reality of downsizing survivor syndrome

1 day - 08 July 2020 | Business

Lisa MatomolaThe increasing news and media reports on companies who are downsizing and/or cutting jobs across Namibia are a startling reflection on the faltering Namibian...

Prinsloo leads as new MD of Namibia Diaries

1 day - 08 July 2020 | Business

Phillepus UusikuThe role of managing director (MD) of Namibia Dairies, a subsidiary of the Ohlthaver & List (O&L) Group, was officially taken over by Leonie...

Still no yellow brick road for uranium

1 day - 08 July 2020 | Business

Jo-Maré Duddy – Paladin Energy, the majority shareholder in Langer Heinrich, at the end of June said it needed US$81 million or around N$1.4 billion...

FNB temporarily closes Klein Windhoek branch

1 day - 08 July 2020 | Business

FNB Namibia took a necessary health and safety measure action in temporarily shutting down its Klein Windhoek branch for a week beginning Monday, 6 July...

COMPANY NEWS IN BRIEF

1 day - 08 July 2020 | Business

Samsung Elec Q2 profit riseSamsung Electronics Co Ltd said second-quarter operating profit likely rose 23%, beating analysts' estimates as solid chip sales to data centres...

How to keep fleet ­vehicles for longer

1 day - 08 July 2020 | Business

Reduced hours on the road because of economic challenges at many companies may result in the retaining of vehicles for longer than normal. While always...

Chinese business community helps locals

2 days ago - 07 July 2020 | Business

By Ndalimpinga IitaBenevolent efforts of the Chinese business community in the northern part of Namibia are helping locals meet nutritional needs amid Covid-19 pandemic.At Oshikango,...

SPYL's Sikongo hands over seeds and food parcels

2 days ago - 07 July 2020 | Business

The Covid-19 pandemic has taught Namibia not to rely on other countries for imports of food, but instead produce its own food, as those countries...

Big Oil confronts possibility of terminal demand decline

2 days ago - 07 July 2020 | Business

JULIEN MIVIELLEAlthough crude prices have rebounded from coronavirus crisis lows, oil experts are starting to ask if the industry has crossed the Rubicon of peak...

Latest News

Itula not a competitor –...

6 hours ago | Politics

OGONE TLHAGEWINDHOEK The Affirmative Repositioning (AR) movement does not see the Independent Patriots for Change (IPC), a mooted political party led by former presidential...

Air Namibia wants its wings...

6 hours ago | Transport

OGONE TLHAGEWINDHOEKAir Namibia has written to the Transport Commission of Namibia, demanding to know why the national carrier's air services licence has been temporarily suspended.The...

Time for Swapo to answer

6 hours ago | Opinion

Now more than ever, the ruling party Swapo has no excuse to maintain the deafening silence on allegations it has benefitted from the multi-million-dollar Fishrot...

San's existence under threat

6 hours ago | Environment

STAFF REPORTER WINDHOEK The San's environment is constantly under threat, and while they were once able to sustain themselves and their way of...

Pick n Pay assault twist

6 hours ago | Crime

ELLANIE SMITWINDHOEK The wife of a suspect, who can clearly be seen beating a Pick n Pay employee in a video that went viral this...

Poaching incidents declining - Shifeta

6 hours ago | Crime

ELLANIE SMIT WINDHOEKNamibia is experiencing a reduction in wildlife poaching incidents, while more arrests have been recorded.This is according to environment...

Fishrot bribes: A replay

6 hours ago | Crime

JAMES KLEINFELD I first met Johannes Stefansson on a typically crisp and windswept day in May in the Icelandic capital Reykjavik. As rain fell intermittently...

What are you talking about?'...

6 hours ago | Sports

NAMPA/AFPOutspoken Australian Nick Kyrgios questioned Dominic Thiem's intellect yesterday after the world number three told him to stop criticising fellow tennis stars Alexander Zverev and...

Cricket Namibia brings new tournament

6 hours ago | Sports

LIMBA MUPETAMIWINDHOEKCricket Namibia has introduced a new tournament to keep fans entertained after the annual Walvis Bay Salt Refiners Cricket Festival was cancelled.The annual XCO...

Load More