Harare — GOVERNMENT has issued gold buying licences to several small-scale producers, which Government believes, could result in improved deliveries to Fidelity Printers.
The licences were issued to applicants with proof of funds for the purchase.
Mines and Mining Development Minister Mr Obert Mpofu said issuance of licences would result in more gold collected from the panners.
He said cases of smuggling would also be reduced as more gold would be delivered through formal channels.
"This was a deliberate initiative by my Ministry and we are confident that the system will work."
Minister Mpofu commended his deputy Mr Murisi Zwizwai for timeously and successfully completing a feasibility study on how small scale miners can be assisted so they can contribute towards revival of the gold sector. Gold from small scale miners contributes significantly to the overall national output.
Zimbabwe Gold Miners and Millers Association president Mr Katazomisi Nixon urged members of his association not to abuse the licences.
"We want to thank the ministry for the positive response and I would like to urge Zigmma members to buy gold and sell it to the right market," he said.
TN Bank this week advanced US dollars cash equivalent to R5 million to Zigmma to purchase gold. The bank is targeting to advance additional R219 million.
According to terms and condition agreed by Government and buyers, authorised buyers will be solely responsible for security of gold acquired, until delivered to Fidelity. The buyers are required to keep a record of gold acquired and sold.
The register must indicate names of parties involved in the transactions including the total weight of gold acquired.
However, the Minister might revoke the permit at any time if the holder is convicted of an offence or breaches any condition of the permit.
