gold

Zimbabwe Gold Delivery increases by 26.24% in September

Gold deliveries to Fidelity Gold Refinery (FGR) saw an outstanding increase of 26.24% in September compared to August, according to the latest data. This surge in gold deliveries reflects a recovery in the production of the precious metal in Zimbabwe. The country has set a target of producing 40 tonnes of gold this year.

In September, a total of 2,479.7759 kilograms of gold were delivered to FGR, surpassing August’s figures. However, when compared to the same period in 2022, gold production in September was down by 7.28%, with last year’s September deliveries amounting to 3,376 kilograms.

While breaking down the September deliveries, it was discovered that large-scale gold producers contributed 961.1361 kilograms, while artisanal miners delivered 2,169.5769 kilograms of gold to FGR.

Data from FGR reveals that over the first nine months of the year, Zimbabwe produced a total of 22,465.8953 kilograms of gold. Small-scale miners accounted for 61.87% of this production, with large-scale gold producers contributing the remaining portion.
Despite the increase in gold deliveries in September, doubts persist regarding Zimbabwe’s ability to reach its target of producing 40 tonnes of gold this year. Earlier in the year, gold deliveries were significantly impacted by heavy rains, resulting in a nearly 16% decline in the first four months compared to the same period in 2022.

In May, Henrietta Rushwaya, the President of the Zimbabwe Miners Federation, expressed optimism that the sector would surpass the previous year’s gold production of 33 tonnes, despite a slow start.

Notably, gold has been a key contributor to Zimbabwe’s exports, with the Zimbabwe National Statistics Agency (ZimStat) reporting that a substantial portion of exported goods in August 2023, worth US$603.2 million, came from gold. Gold accounted for 21.6% of these exports.

ZimStat also noted that Zimbabwe’s trade deficit had decreased, dropping from US$179.8 million in July 2023 to US$170.1 million in August 2023. This decrease was attributed to increased exports, which rose by 7.7% in August, compared to July. Key exports included semi-manufactured gold, nickel mattes, tobacco, and other mineral substances.

Gold Export in Rwanda Rakes in Profitable Revenue

The Rwanda Mines, Petroleum and Gas Board (RMB) has announced in a report the mineral export revenues for the second quarter of 2023, covering the period from April to June. 

 

The revenue from mineral exports increased by an astounding 46.4% and the volume of exports rose by a significant 12% between the first and second quarters of 2023, according to the data. The overall weight of mineral exports during this time was 6,638,538 kg, which was worth about $362,000,000.

 

The report highlighted the performances of different mineral commodities in terms of value in dollars. According to the report, more than $302 million (almost Rwf 356 billion) was made from gold exports, making it the most profitable resource, surpassing cassiterite, coltan, wolfram, and other minerals.

During the same period, the country exported more than 1,144 tonnes of cassiterite, valued at over $18.8 million which is about Rwf 22 billion. 254 tonnes of coltan were exported, which brought in $27.8 million (about Rwf 32.6 billion), while over 635 tonnes of wolfram brought in $8.4 million (around Rwf 10 billion).

 

Also, 4,267 tonnes of other minerals accounted for more than $4.5 million (more than Rwf 5.3 billion) of the total revenue from mineral exports.

 

Over $772 million in total mineral export revenue was earned by Rwanda in 2022, a significant increase from $516 million in 2021.

 

By 2024, the nation hopes to generate $1.5 billion in yearly mineral export profits as part of its lofty objectives. In order to do this, the government works hard to entice investment in the mining industry and promotes Rwanda as a center for regional processing and trading.

 

Uganda: Gold Lifts Export Earnings.

Gold exports lifted foreign exchange receipts in March and April, which could suggest an end to a long standoff between the government and dealers over tax-related issues.

However, no details have been provided to show the performance in May.

The data also indicate that gold exports during March and April were higher than the average of 2,400 kilograms exported before gold dealers suspended the exportation of the commodity over a tax dispute in 2021.

Uganda had before the suspension, on average, exported gold worth $172.2m, making the commodity the country’s most valuable export.

Last year, the Bank of Uganda indicated that gold dealers had lifted the suspension, resuming exports in June, which returned a value of 165.9m.

However, there has been mixed trade data as the government is yet to settle the tax dispute. Gold had before the disruptions become Uganda’s largest single export, contributing at least 44 percent of total export earnings.

The government had proposed a charge of $200 (Shs762,356) for every kilogram of exported gold, which was later implemented.

However, this prompted gold dealers to suspend the export of gold, citing the introduction of an inconsiderate charge that would leave them counting losses.

‘The exports in March and April lifted the country’s export earnings, which during the period rose to $681m in March and $538m in April.

Dr. Adam Mugume, the Bank of Uganda director for research, has previously indicated that Uganda’s export receipts had been impacted by the failure to register gold exports due to a tax-related dispute between the government and dealers.

However, the government has been engaging gold dealers to come up with an agreeable levy.

Zimbabwe Introduces Gold-Backed Digital Token

  • The new digital currency protects against currency fluctuations of the Zimbabwean dollar.

  • The digital token serves as a store of value and a means of payment.

The Reserve Bank of Zimbabwe (RBZ) has announced its decision to introduce a gold-backed digital token to serve as both a store of value as well as a means of payment. The issuance of the gold-backed digital currency as a legal tender became effective on May 8th, 2023. 

It was launched to support Zimbabwe’s currency by enabling citizens with small amounts of Zimbabwean dollars to exchange them for digital tokens that can store value and protect against currency fluctuations. 

The introduction of digital tokens is a response to a sharp decrease in the value of the Zimbabwean dollar by increasing the number of value-preserving tools accessible in the economy. The value of the Zimbabwe dollar has decreased by about half since the end of 2022 and is now valued at 2,200 against the US dollar in the country’s black market.

 

President Emmerson Mnangagwa’s administration is banking on this digital investment to increase the value of gold and lessen price pressure in a nation that frequently experiences hyperinflation. The gold-backed digital token will stand in for a sort of digital currency backed by the central bank of Zimbabwe’s gold reserves. 

The bank wants to make it possible for owners of Zimbabwean dollars to exchange their money for gold-backed tokens, offering a measure of security against the local currency’s volatility. Tokens purposed for investment will have a vesting period of 180 days thereafter the tokens will be redeemed at market rates worldwide. The tokens can be bought in either US dollars or the local currency.

According to the RBZ, “holders of physical gold coins, at their discretion, will be able to exchange or convert, through the banking system, the physical gold coins into gold-backed digital tokens.

“The digital tokens held in either e-gold wallets or e-gold cards will be tradable and capable of facilitating Person-to-Person (P2P) and Person-to-Business (P2B) transactions and settlement. It, therefore, means that the gold-backed digital tokens would be used both as a means of payment and a store of value.”

For the longest time, Zimbabwe has suffered from hyperinflation due to poor economic programs by its government; between 1980 till 2009. The government replaced the Zimbabwean dollar with the US dollar in 2009 and inflation stalled. Thereafter, the government reintroduced the Zimbabwean dollar in 2018, which lost value again because citizens hoarded the US dollars. The RBZ then introduced the Mosi-oa-Tunya gold coins in 2022, which halted the depreciation of the Zimbabwean dollar and reduced the demand for US dollars.  

With the introduction of gold-backed digital tokens, the RBZ hopes that it will complement the Mosi-oa-Tunya coins and encourage more citizens to buy into the gold industry. The digital token will act as the digital representation of the physical gold coins. 

In 2022, Zimbabwe produced 35 tonnes of gold and through a gold trading business, the central bank is a major customer. According to data provided by Fidelity Gold Refineries, the country plans on reaching a 14% increase in gold production to 40 trillion this year, having earned $377 million from gold production in the first quarter compared to $463 million a year ago. 

SOUTH AFRICAN COMPANY DIVERSIFIES ITS ASSET PORTFOLIO.

  • Sibanye-Stillwater is a South African multi-national mining and metals processing group with a diverse portfolio.
  • It is the world’s largest primary producer of platinum, the second-largest primary producer of palladium, and the third-largest producer of gold. 
  • The company has recently begun to build and diversify its asset portfolio. 

 

Sibanye- Stillwater is a South African multi-national mining and metals processing group with a diverse portfolio of mining and processing operations and projects and investments across five continents. 

 

This company has established itself as one of the world’s largest primary producers of platinum, palladium, and rhodium and is also a top-tier gold producer. It produces other PGMs, such as iridium and ruthenium, along with chrome, copper, and nickel as by-products.

In April 2016 the company entered the PGM space, with an all-share offer for Aquarius Platinum, comprising Kroondal, Platinum Mile, a 50% shareholding in Zimbabwe’s Mimosa mine, and a number of exploration projects, as well as the acquisition of the Rustenburg operations from Anglo American Platinum Limited.

On 30 August 2017, following the successful purchase of the Stillwater mine in Montana, Sibanye Gold Limited began trading as Sibanye-Stillwater and reorganized its operations by region – Southern Africa and the United States.

In June 2019, Sibanye-Stillwater acquired Lonmin Plc, London, UK, a top-tier PGM producer. The enlarged group is the world’s largest primary producer of platinum and rhodium, one of the largest producers of palladium, and the leading recycler and processor of spent PGM catalytic converter materials.

According to its 2020 annual report, the company produced 3 million ounces of PGM and 0.98 million ounces of gold.

In 2020, the group employed 84,775 people, mostly in South Africa. Thus, Sibanye-Stillwater is one of the top four private sector employers in South Africa and the largest industrial employer in the state of Montana.

It is the world’s largest primary producer of platinum, the second-largest primary producer of palladium, and the third-largest producer of gold. 

 

The company has recently begun to build and diversify its asset portfolio into battery metals mining and processing and is increasing its presence in the circular economy by growing and diversifying its recycling and tailings reprocessing operations globally.

 

BURKINABE GOVERNMENT BUYS 200 KILOS OF GOLD FROM LOCAL MINE

As announced on Tuesday, the government of Burkina Faso has acquired 200 kilos of gold from Canadian miner, Endeavor.

 

The Ministry of Energy and Mines made the announcement in a statement that revealed that the decision to purchase gold produced from the country’s local mine was to the public’s benefit, as the company will be compensated fully for its value.

 

Jean-Emmanuel Ouedraogo, the government spokesman said “the decision to requisition gold is dictated by an exceptional context of public necessity, which requires the state to ask certain mining companies to sell part of their production”.

 

The mining company, Endeavor is the biggest gold miner in Burkina Faso with its headquarters in the Uk. the company is funding combat against a rampant jihadist insurgency that prompted two military coups in 2021.

 

Gold is seen as a worldwide means of buying foreign currency to shore up reserves.

 

The Burkinabe authorities in charge said the transaction was exceptional and temporary noting that the transaction was done in compliance with regulations governing gold trading.

 

The government wished to “reassure investors and all other partners of Burkina Faso”.

 

Since operations began in 2008, the Mana gold mine produced 6.04 tons of gold in 2022. It is currently owned by Endeavour mining, which it acquired in 2020 as part of its acquisition of Canada-based gold miner Semafo to form one of the largest gold producers in West Africa.

 

According to Endeavor’s website, the company owns 90% and Burkina Faso’s government owns the rest shares.

EGYPT RANKS THIRD IN WORLD’S GROWTH OF GOLD RESERVES

According to Nagy Farag, the Adviser to the Minister of Supply and Internal Trade for Gold Industry Affairs reported on Friday that Egypt ranks third in the world in terms of growth of gold reserves.

 

Nagy Farag noted that Egypt does not rank third in total gold reserves but in terms of the strategic growth of its reserves.

 

He further explained while speaking to al-Hadath al-Youm channel, that the country’s strategic gold reserves for the year 2022 soared from about 44.6 tons to 125.5 tons.

 

Asides from the Sukari gold mine, he added that Egypt holds many promising gold mine areas.

 

Farag said that the Ministry of Petroleum and Mineral Resources is outrightly fulfilling its duty in gold mining and reserves.

 

RWANDA HEADQUARTERS AFRICA’S FIRST COLTAN REFINERY WORTH $20 MILLION

Rwanda becomes Africa host nation to one of world’s largest coltan exporters headquarters, making it the first Africa’s coltan refinery at a cost of over $20 million.

 

The plant is located in Bugesera Industrial Park and was built by a mining investment company called the Power Resources International Ltd, a British-based mining company that operates mainly in the Ngororero District in the areas of Muriro and Rukaragata.

 

An agreement between the Power Resources International Ltd and the Rwandan Government was signed in 2018 for the construction of a Coltan processing factory to add value to it before being placed on the international market.

 

The plant with a cost of over 20 million US dollars has been completed although under a pilot phase before official inauguration and will have a 120 tonnes processing capacity of Coltan per month.

 

As said by the CEO of Rwanda Mines, Petroleum and Gas Board (RMB), Amb Yamina Karitanyi, the Coltan processing plant joins other facilities including gold and cassiterite refineries, and added that the Coltan processing plant will be inaugurated in the near future.

 

Also, the Deputy CEO of RMB, Dr. Ivan Twagirashema disclosed that the factory will benefit the entire region which produces more than 70% of the Coltan needed globally.

 

He added that with Rwanda’s large amount of Coltan there should be no fret of running short of supply as the plant can also process minerals from other countries.

 

According to a report in 2020 from the National Institute of Statistics of Rwanda (NISR), it indicated that Rwanda generated over 1.4 billion US dollars from minerals exported between 2015 to 2019. 

GHANA ANNOUNCES NEW POLICY TO BUY OIL WITH GOLD INSTEAD OF U.S DOLLARS

On Thursday, Ghana’s Finance Minister Ken Ofori-Arra presented the 2023 budget in parliament and also announced that there will be more spending cuts, including a freeze on government hiring and hike in the Value Added Tax. It also looked into using gold to buy oil rather than U.S dollars as the country’s currency depreciates against the U.S dollars.

 

The new policy to buy oil products with gold rather than U.S dollars will be effective next year as previously announced by the Vice-President Mahamudu Bawumia on facebook, which is part of the government measures to strengthen the Cedi.

 

The Spokesperson of the Vice-President, Gideon Boako explained how the policy works, he said: “It is basically going to be a government-to-government transaction”.

 

He mentioned that the Ghana’s government will buy gold locally with Cedis through the Bank of Ghana (financier) and then exchange the gold for fuel (oil) in a barter form, an example, with the UAE’s government.

 

Daniel Amartey, an economist with the Accra-based Policy Initiative for Economic Development (PIED) described the policy as inventive. He said: “It is a very progressive one and within the shortest possible time it should be able to help address the depreciation of Cedis, requiring less dollars to be used in terms of our exportation”.

MALI GOVERNMENT SIGNS INTO LAW NEW STATE-OWNED MINING COMPANY

On Thursday, Mali’s transitional government signed into law a new State-owned mining company, which is part of the government’s bid to increase revenues from the mining industry, a major part of the West African country’s economy.

 

The officials said that the company, Société de Recherche et d’Exploitation Minière du Mali (Sorem SA), will be fully funded by the State and will aim to explore and develop mines. 

 

Although details of how much funding the State was giving Sorem was not disclosed, nor which mine projects the company was likely to focus on.

 

Mines Ministry Secretary-General, Soussourou Dembele said: “The Malian State is going to enter the mining sector, there is space for everyone”.

 

According to the law, the Malian State holds stakes of between 10% and 20% in subsidiaries owned by multinational mining companies like Barrick Gold, B3Gold, Resolute Mining, Endeavour Mining, and Hummingbird resources.

 

However, President of the Legal Commission of Mali’s transitional government, Souleymane Gueye said that: “For the mines that will be developed by Sorem, the State will get 100% of the benefits”.