Zimbabwe plans to sell stake in gold refinery for $49m
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Ten firms agree to buy 60% stake in Zimbabwe’s only gold refiner for $49m

30 Jul 2021 (Last Updated July 30th, 2021 10:00)

Fidelity Gold Refinery is owned by the country’s central bank.

Ten firms agree to buy 60% stake in Zimbabwe’s only gold refiner for $49m
A stake of 60% in the gold refinery business will be sold to miners. Credit: Mariusz Prusaczyk from Pixabay.

Ten firms have agreed to buy a 60% stake in Fidelity Gold Refinery, the only gold refining and exporting firm in Zimbabwe, for $49m.

Fidelity Gold Refinery is owned by the country’s central bank, which announced its plans to split its gold refining and printing unit, Fidelity Printers and Refiners (FPR), into two separate entities in January,

Zimbabwe Finance Minister Mthuli Ncube told the parliament: “Ten shareholders have so far accepted to take shareholdings in Fidelity Gold Refinery at a total consideration of $49m.”

Commissioned in 1988, FPR has an installed refining capacity of 50 tonnes of gold annually.

Earlier, the central bank said it would provide shares to the potential mining firms based on the average gold quantity delivered over the last three years to FPR, reported Reuters.

Some of the country’s biggest gold producers include Kuvimba Mining House, Caledonia Mining and locally listed RioZim RTNR.

The country witnessed gold production of 9.95 tonnes in the January to June period.

Gold production is expected to touch 32 tonnes by the end of December, following a drop of almost a third in 2020.

Earlier this year, Zimbabwe granted an Exclusive Prospecting Order (EPO) to Premier African Minerals for the area comprising the Zulu Lithium and Tantalum claims (Zulu).

The Zulu Lithium and Tantalum Project is claimed to potentially be the largest undeveloped lithium-bearing pegmatite in the country.