The Reserve Bank of Zimbabwe (RBZ) is restructuring its key subsidiary, Fidelity Printers and Refiners Limited (FPR) by separating its core businesses of gold refining and that of printing and minting into two entities to pave way for private investment into the gold refining business, 263Chat Business has learnt.
FPR is the country’s sole gold buyer and controls all trading activities of gold doubling as the printing and minting company of the local currency.
“The unbundling of FPR is designed to partially privatize 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,” the RBZ said.
Under the new set up, RBZ shall retain 40 percent shareholding in FPR and dispose off 60 percent shareholding to both large and small scale gold producers.
“Using a three-year average delivery of gold to FPR, the Bank will off 50 percent shareholding to FPR to the large scale producers, 3 percent to major FPR gold buying agents and the balance of 7 percent to small scale producers through their representative bodies,” said RBZ.
The Bank said it shall however maintain its 100 percent equity in the minting and printing business for national security reasons.
The Bank has also resolved to dispose full equity in its coal mining unit, Tuli Coal Limited to the government, a decision the Bank has long harbored.
