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Incentives Push Gold Output By 55,5%: RBZ

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By Alois Vinga


THE Reserve Bank of Zimbabwe (RBZ) has hailed the Gold Incentives Scheme (GIS) introduced by the government last year for increasing the precious mineral’s output and deliveries by 55,5%.

Small-scale miners also maintained the lead in production ahead of large producers.

In a statement Wednesday, the RBZ governor, John Mangudya applauded producers for a sterling job after posting good productive results.

“Small and large gold producers have delivered a total of 29 629,61kg of gold to Fidelity Gold Refinery (FGR) in 2021, a 55,5% increase from the 19 052,65kg delivered in 2020,” he said.

“Large gold producers delivered 11 159kg to Fidelity Gold Refineries (FGR)  in 2021 whilst small-scale producers contributed 18 470kg.”

The central bank chief also commended the government for introducing the GIS last May saying the scheme had made a significant impact on gold deliveries to FGR.

Under the GIS, the RBZ allows some gold exporters to retain up to 100% of their gold earnings depending on their output.

Under the arrangement, gold producers are also allowed to export their processed mineral equivalent to the incremental portion and secure loans for production.

Data from the central bank shows monthly deliveries peaked from 997,6kg in January 2021 to a high of 4 000kg by December 2021.

“It is projected that the quantum of the country’s gold exports in 2022 will increase beyond the 29 629.6kg when the gold component in the Platinum Group Metals is eventually included in the tally of gold deliveries to FGR,” Mangudya added.