By Wellington Zimbowa
THE country’s central bank is set to entirely dissociate from its coal mining subsidiary Tuli Coal (Pvt) Limited as well, as breaking Fidelity Printers and Refiners (Private) Limited into two separate entities.
Reserve Bank OF Zimbabwe (RBZ) governor Dr John Mangudya in a recent press statement revealed that the central bank’s entire interest in Tuli Coal is set to be sold out to the government.
He added that Fidelity Printers’ unbundling into to separate units will see one focusing on gold refining and with the other on printing and minting.
“The Reserve Bank of Zimbabwe (the Bank) would like to inform members of the public that at its meeting on 9 December 2020, the Bank’s board resolved to dispose of Tuli Coal (Private) limited to Government and to unbundle Fidelity Printers and Refiners into two business entities (i) gold refining and (ii) printing and minting,” said Dr Mangudya.
He revealed that the central bank had been eager to dispose of Tuli Coal long ago long time and the bank is optimistic that its ceding to the government will yield fruitful results.
“The disposal of Tuli Coal will fulfil 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.”
In the interim, the partial privatization of FPR’s gold refining business is seen to have been ignited through this move where 60% of shareholding will be disposed to private players in both large-scale and small-scale mining.
“The unbundling of FPR is designed to partially privatize the gold refining business by allowing private players to acquire a stake therein in the process secure and endear the private sector’s interests in the production and marketing of gold,” said Dr Mangudya.
Government through the FPR has been maintaining gold buying monopoly in the country leading to outcries over skewed pricing in its favour and side marketing.
In 2020, poor gold pricing ignited a delivery decline from 25 tonnes delivered in 2019 between January and September to 12.8 tonnes delivered the same period in the previous year.
By Wellington Zimbowa