Gold Deliveries to FPR Posted Notable Decline in Zimbabwe

SEATTLE (Scrap Monster): The latest official data published by the Zimbabwean government authorities suggests notable decline in gold deliveries to Fidelity Printers and Refiners (FPR) - the only accredited agency in the African nation authorized to buy and export gold. The FPR purchases gold from small-scale miners in the country in return for cash in U.S. dollars.

The gold sales to FPR recorded significant decline by 31% during 2020 to total 19 tonnes. The drop in volume was mainly on account of delayed payments by FPR, which forced small-scale miners to sell their gold to illegal buyers. It must be noted that the gold deliveries, which had touched a record of 33.2 tonnes in 2018, has been witnessing steady decline. The deliveries had totalled 27.66 tonnes in 2019.

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The total gold sales by small-scale producers stood at 9.35 tonnes in 2020, as compared with 17.48 tonnes in 2019. Meantime, as per estimates, nearly $1.2 billion worth of gold is illegally exported out of the country every year.

According to industry experts, the recent government decision to ban use of mercury in gold mining process could further impact output from small-scale sector in the near-term. With the aim of boosting gold output, the government had announced plans to split FPR into two separate entities and sell the majority stake in the new gold refinery business to miners.