Reserve Bank of Zimbabwe’s (RBZ) Board of Directors on Wednesday, last week resolved to unbundle Fidelity Printers and Refiners (Private) Limited (FPR) into two business entities, which include gold refining; and printing and minting to partially privatise the refining business.
The RBZ Governor John Mangudya says the Central Bank shall retain 40% shareholding in FPR and dispose of 60% shareholding to both the large-scale and small-scale gold producers.
“The unbundling of FPR is designed to partially privatise the gold refining business by allowing private players to acquire a stake therein and in the process secure and endear the private sector’s interests in the production and marketing of gold in Zimbabwe,” Mangudya says.
“By being part of the decision making process on gold trading, it is expected that the gold producers’ compliance levels in the trading of gold will significantly increase.”
The Bank will offer 50% shareholding in FPR to the large scale gold producers using a three-year average delivery of gold to Fidelity.
Major FPR gold buying agents will get 3% of the shares.
Small scale producers, through representative bodies, will also get the balance of 7%.
RBZ shall continue to have 100% equity in the printing and minting business for national security reasons.
The Central Bank’s Board of Directors also resolved to dispose of Tuli Coal (Private) Limited to Government besides the unbundling FPR.
Mangudya says, “The disposal of Tuli Coal (Private) Limited will fulfill the Bank’s long-held desire to sell its entire equity in the asset, which is capable of predominantly producing thermal coal, for the benefit of the economy.”
“The disposal of Tuli Coal (Private) Limited will fulfill the Bank’s long-held desire to sell its entire equity in the asset, which is capable of predominantly producing thermal coal, for the benefit of the economy.”