RBZ offloads non-core asset, unbundles Fidelity

Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) on Wednesday said it was divesting out of mining firm, Tuli Coal and unbundling its gold buying and printing subsidiary, Fidelity Printers and Refiners (FPR).

For over seven years, the central bank had unsuccessfully tried to dispose its 70 percent stake in the mining firm to concentrate on its core business.

“The disposal of Tuli Coal Limited 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,” said RBZ Governor, Dr John Mangudya.
The central bank however continues to hold shareholding in several other non-core businesses.

Dr Mangudya said the FPR will be unbundled into two entities, one for gold refining and the other for printing and minting.

While the central bank will maintain a 100 percent shareholding in the in printing and minting business for national security reasons, it will cut its stake in the gold refining business to 40 percent.

Large scale gold buyers will be allowed to own half the business, with a 50 percent stake, while seven percent will go to small scale producers and three percent to gold buyers.

“The unbundling of the FPR is designed to partially privatise 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,” Dr Mangudya said.

“By being part of the decision making process on gold trading, it is expected that the gold producer’s compliance levels in trading of gold will significantly increase.”

Without stating how much the stake in Tuli Coal and FPR was worth, Dr Mangudya said the businesses had been independently valuated.
New Ziana