Zimbabwe is targeting to upscale its engagement for re-accreditation into the London Bullion Market this year as the government seeks to optimize earnings from gold by participating on a global market with a competitive pricing structure.
The country had a strong performance in gold production at a record 33.2 tonnes that raked in over US$1 billion dollars in export receipts last year.
Now with a projected output of 40 tonnes this year, the mines ministry believes it has a strong case to seal its readmission into the bullion association this year.
One of the prerequisites for re-admission on the world gold market was for Zimbabwe to refine 10 tonnes of gold for three consecutive years, a requirement fulfilled in 2015 when production hit 21 tonnes.
The Deputy Minister of Mines and Mining Development, Cde Polite Kambamura said rejoining the London Bullion Market opens the country’s yellow metal to secure a market that offers competitive prices and protection against price movements.
Discussions to rejoin the London Bullion Market have been on the agenda for the last 5 years, with experts contending that this would enhance the country’s ability to sell its mineral to global buyers.
Currently, Zimbabwe is selling its stock to Rand Refiners of South Africa where a levy of 0.3 percent is effected on the total earnings.