Mining Journal: First Zimbabwe gold shipment crosses the border

Phil Halliday

This first shipment went to Rand Refineries in South Africa, said Errol Smart, chief executive of Duration Gold, who described the event as very exciting. "We can now receive foreign currency for the gold and sell it offshore, we now have shipping and refining without interference. This is monumental for the recovery of Zimbabwe's gold industry," he said.

The shipment of 1,000oz was made by Duration and some other producers. Mr Smart said the Chamber of Mines intends to make weekly shipments, depending on supply. "This is so important; we are no longer price takers," he said.

Duration intends to make another shipment next week, which will be of a similar quantity. For the time being, the Zimbabwean government has no royalties in place on the shipping of gold although discussions will take place. Mr Smart said the system was being reviewed and will "be in line with best practice". Gold producers pay corporation tax of 25%.

Mr Smart expects foreign investment will now be encouraged, as will 100% ownership. The Chamber of Mines has a marketing agreement with Rand Refineries, the only refiner in Africa.

In February, the Reserve Bank said gold producers could make their own arrangements for the refining and sale of gold, as well as receiving a price for gold based on the international market and operating in foreign currency accounts. Then last month, finance minister Patrick Chinamasa ended the requirement for companies to submit a proportion of foreign currency earnings to the Reserve Bank for conversion to Zimbabwe dollars.