According to the Mozambican Association of Mining Operators (AMOMINE), cited in Monday's issue of the independent newsheet "Mediafax", although the central bank has the preferential right to buy gold mined in Mozambique, its refusal to buy small amounts drives many operators to sell their gold abroad.
For most operators, AMOMINE points out, it would take a long time to accumulate 20 kilos of gold, As a result the only people who sell gold to the Bank of Mozambique are the foreign companies licensed to extract the precious metal.
AMOMINE complains that the bank's procedures are leading small mining concerns to bankruptcy, and can see no reason for the bank refusing to buy a couple of kilos a time.
The operators also argue that, since the Bank has the right to buy the gold, it should also share in the risks that the operators run in producing it.
AMOMINE points out that the central bank dictates all the rules, but takes none of the risks involved in extracting and transporting gold.
The result is that many operators negotiate directly with foreign clients, who buy it up, refine it, certify it, and then sell it on at world market prices. Few of the benefits of this business go to Mozambique.
SOURCE: AIM
