FALCON Gold Zimbabwe Ltd (Falgold) says no new mines can be established without investor participation and no long-term development and exploration policies can be implement
ed because of keeping only the gold mining industry operational.
“The disadvantage of keeping only the gold industry alive is that no long-term development and exploration policies can be implemented,” Falgold chairman David Marshal said.
He said because of concentrating on the gold mining industry only, there would be no investor participation resulting in the mining industry collapsing.
Marshal blamed the gold price being paid for the reduction in the production of gold by the large-scale producers.
“The drop in production by large scale producers is due to an unrealistic gold price being paid compared to the full United States dollar price converted to local currency at auction value and also the practice of increasing price just in time to stop liquidation,” he said.
At the foreign currency auction the United States dollar is trading at $5 333 and the British pound at $9 700.
Marshal said this was having a stunting effect on the gold mining industry and unless the situation is corrected investors would not seek participation in the industry.
However, he said the monetary policy statement by Reserve Bank governor Gideon Gono had given the gold mining sector a new lease of life.