Zimbabwe miner may pay suppliers in gold amid national cash shortage

Section:

Another rich country insisting on being poor instead of digging its own money out of its own ground.

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Metallon May Pay Suppliers in Gold Amid Zimbabwe Cash Shortage

By Godfrey Marawanyika
Bloomberg News
Tuesday, September 18, 2018

Metallon Corp. is considering paying mining-equipment suppliers in gold because a cash shortage in Zimbabwe is hampering its plan to expand output, Chief Executive Officer Mzi Khumalo said.

Zimbabwe, which abandoned its own currency in 2009 because of hyperinflation, has faced cash shortages for at least the past two years as businesses and individuals moved money offshore and the import bill increased after exports collapsed. The country’s biggest gold miner needs at least $400 million to buy new machinery and upgrade existing equipment as it targets a fourfold increase in production.

... Dispatch continues below ...



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Metallon has held talks with equipment suppliers in South Africa and Canada, among other countries, Khumalo, 62, said in an interview at his home in the capital, Harare. Zimbabwean law enables the company to convert leases on claims around its four mines into special mining leases that can then be used to secure financing for its equipment purchases, he said.

"We can then enter agreements with banks, various financiers on the basis of gold-backed transactions," Khumalo said. Suppliers will "get their payment in gold," he said. ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-09-18/metallon-may-pay-supp...

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