WITH small-scale gold miners continuing to produce most of the precious metal delivered to authorities, major industry value chain player, Betterbrands, plans to set up a gold refinery in Bulawayo.
This comes as the company has set an audacious target of delivering gold worth an eyewatering US$1,5 billion in 2024, having ended 2023 with deliveries valued at US$800 million.
In 2022, Betterbrands delivered 18 tonnes out of the 35 tonnes of gold that were delivered to Fidelity Gold Refiners (FGR), a figure that represented nearly US$1,2 billion — the largest by small-scale miners in recent years.
This year, Betterbrands remained the country’s biggest gold buyer after delivering another huge haul for the third year running to the state-owned FFGR.
In the Reserve Bank of Zimbabwe (RBZ) report for the third quarter, artisanal small-scale miners, from which the dominant Betterbrands purchases the precious metal, outperformed large scale producers for the third time in a row.
Speaking to the Daily News On Sunday last week, Betterbrands proprietor, Pedzai “Scott” Sakupwanya, revealed that the company was embarking on a massive expansion programme, which included setting up a refinery in Bulawayo.
“The company has a footprint across the country, as a licensed gold buyer. “This has enabled it to make a lasting impact in mobilising gold form the artisanal small scale gold miners. “For the period January to December 2023, artisanal small scale gold miners delivered a total of 17.895 tonnes of gold to FGR, of which 65 percent (12.1 tonnes) was deposited by Betterbrands.
“This figure is also higher than the 10.674 tonnes delivered by primary producers over the same period. This amplifies the significant contribution that Betterbrands has made in terms of gold deliveries in 2023,” Sakupwanya told the Daily News On Sunday.
“Based on this performance and trajectory, the company has become a major player in the gold sector, and has potential to double its current contribution. This explains the numerous initiatives in the pipeline to boost activity.
“The company is now working on the establishment of a gold refinery in Bulawayo. This is a milestone achievement for both the company and the country. “This refinery is not in anyway meant to compete with the already existing Fidelity Gold Refinery. Rather, this is an establishment designed to complement FGR’s splendid efforts over the years in harnessing the country’s gold production through formal channels.
“More importantly, this initiative syncs with President ED Mnangagwa’s clarion call for the mining sector to prioritise mineral beneficiation. “Betterbrands’ vision and strategy revolves around that national… and hence, such corporate efforts,” Sakupwanya further told the Daily News On Sunday.
He said Betterbrands was aiming to have the mooted gold refinery as a signature investment that would be world class and enhance the country’s competitive edge in gold refinery.
“Beyond refining gold produced locally, our refinery will create scope for toll refining for gold produced in the region and beyond. And this will translate in increased gold throughput, and enhance the country’s foreign exchange earnings.
“Further to this huge investment, Betterbrands intends to have a countrywide footprint through the establishment of gold buying centres in the various provinces of the country. “As a licensed gold buyer, our model revolves around ensuring presence in all gold rich areas and proximity to our key stakeholders — the small scale gold miners. “These gold buying centres will ensure that small-scale miners have nearby markets to easily sell their gold production.
“Such convenience is critical for the success of their financial and production cycles and once these are oiled, the country’s gold output will increase going forward,” Sakupwanya added. Sakupwanya said Betterbrands was optimistic that its initiatives would lead to increased gold production and more channelling of gold through the formal structures.
The freshly-minted Mabvuku-Tafara MP, said Betterbrands was driven by the desire to create a gradual, but focused capacitation and empowerment pathway for the artisanal miners to ensure their successful inclusion in the country’s developmental equation.
“They must not be left behind, rather they must be included in this developmental matrix. Creating such infrastructure around their operations and activities brings them closer to the market and ensures that their gold mined is timely purchased to give them the financial capacity necessary for their own development.
“We want them to be competitive all the way and so as a company, Betterbrands will aim to be a partner of choice and in also enhancing their inclusion in financial issues in line with the national financial inclusion drive, which is being driven by the central bank.
“That way Betterbrands, through its closely knit and empowering business model, will develop individuals and communities for an empowered Zimbabwean economy through these corporate actions that are developed and implemented at community level,” Sakupwanya said further.
