GOLD TO BE SOLD VIA CENTRAL BANK

LOBAMBA – Gold mined in the country will be sold via the Central Bank. This is because the Ministry of Natural Resources and Energy recently signed a Memorandum of Understanding (MoU) with the financial institution to facilitate the disposal and storage of precious metals and minerals in its vaults.

Minister of Natural Resources and Energy Jabulile Mashwama, in her responses in the ministry’s Parliament Portfolio Committee Report tabled on Wednesday, stated that guidelines to implement requirements of the Mines and Minerals Act of 2011 on local beneficiation were already formulated. Beneficiation is one of a variety of processes that extracts ore from mining and separates it into the desirable mineral and gangue (the less useful part of the ore).

She said this initiative would facilitate the safekeeping of the gold which is produced from processing run-off mines at the Central Bank.
This will be before conveyance to established refinery plants for treatment. “The final product/gold bullion shall be returned to the Central Bank to be sold in her counters under the ministry’s supervision. This set-up guarantees that the beneficiation of precious metals is being promoted locally and efficiently,” she stated.

Sustainable

Mashwama mentioned that this practice was sustainable in other resource-dependent economies regionally and the ministry benchmarked its concept against these reliable models. She pointed out, however, that the ministry had limited human capacity to promote this development and, therefore, has since lodged a request to the Ministry of Public Service for the required posts.

The minister also put forth that they envisaged developing streamlined and effective institutional arrangements for the mining sector and adequate capacity to promote, authorise and regulate mineral operations.
Still on the mining front, she explained that local beneficiation of minerals was a prerequisite in the grant of mineral rights as required by the Mines and Minerals Act and the National Mining Policy of 2003. 

For instance, Jacob and Co Swaziland, which will mine gold in north Swaziland, submitted in its application, a beneficiation strategy, which provided a framework that sought to make comparative advantages inherited from the gold mineral, a national competitive advantage.

Mashwama pointed out that the ministry encouraged mining companies to develop a participatory and collaborative approach to mine planning and development and also take into account the needs of local communities. This will ensure that they fulfil their role as good corporate citizens.
“The ministry’s mandate is to provide an enabling environment to ensure that minerals, metals and oils are extracted and exploited in a sustainable manner,” said the minister.

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