HomeBusiness DigestTrust considers revaluing fund

Trust considers revaluing fund

Eric Chiriga

THE Gold Mining and Minerals Development Trust (GMMDT) is considering revaluing the $410 million required to fund milling projects, chairman Nhlanhla Masuku has said.

ONT face=”Verdana, Arial, Helvetica, sans-serif”>The money needs to be revalued because of the galloping inflation in Zimbabwe which has reached 399,5%.

“Obviously they will now require more than $410 million due to inflation,” Masuku said.

Besides inflation eroding the value of the set aside funds, Masuku said cash shortages were seriously affecting the gold buying process.

“Small-scale gold producers only trade their gold for cash and we have no cash, so they take their gold to the parallel market where they get cash,” he said.

Masuku said the 10 projects submitted late last year for funding were still going through approval at the Reserve Bank of Zimbabwe.

“Meanwhile, more applications for funding of gold custom milling plants continue to come from all over the country,” Masuku said.

He said GMMDT was working on two programmes.

The first one is the opening of gold collection centres around the country so that people do not revert to the illegal market while the second is the project of mining semi-precious stones.

Masuku agreed that individuals took their gold to the parallel market because the gold prices offered by Fidelity Printers and Refiners (Pvt) Ltd were poor.

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