DIAMOND and gold miners have planned a meeting with Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, after a new policy compelling them to remit all their earnings to the central bank triggered a cash flow crisis.
The situation is particularly worrisome for gold mining companies, which resumed operations on dollarisation after closing down during the hyperinflationary era.
Executives in the mining sector said they would be represented by the Chamber of Mines of Zimbabwe (CoMZ) at the meeting with the RBZ.
CoMZ chief executive officer (CEO), Isaac Kwesu, confirmed the planned meeting but said it was premature to comment.
“We are meeting the RBZ,” he said.
“Not all minerals have been affected (by the new policy) but 100 percent of proceeds for gold and diamond mines go to RBZ. Some of their costs are funded externally,” Kwesu said.
The meetings had been planned for this week, although no date could be given by the sector players.
It has been a difficult decade for the gold mining subsector, which reported the highest casualties during hyperinflation between 2007 and 2008.
As hyperinflation deepened, the RBZ’s gold buying unit, Fidelity Printers and Refineries, failed to pay up to US$50 million for bullion, causing mine closures and capital flight.
Most gold mines returned to production at dollarisation in 2009; government issued Treasury Bills (TBs) for the outstanding US$50 million due to the fact that it did not have the cash to pay for the gold.
Diamond output is expected to be affected by the recent closure of seven players to pave way for a consolidated firm.
Mining industry sources said this week the two remaining players, Murowa Diamonds and Marange Resources, had approached CoMZ, seeking an audience with the RBZ to be allowed to remit a certain threshold and remain with funding for operations.
