Harare — MINERAL production for 2008 has declined significantly due to shortages of foreign currency and policy uncertainties in the prevailing economic environment.
An official with the Chamber of Mines said production of gold, which is one of the highest foreign currency earners, has declined to 70kg in November from 250kg.
Gold is a major product in the mining sector as it contributes 40 percent of total mineral production annually
"Nickel production has also gone down with Bindura Nickel Corporation suspending operations, while chrome production is at 10 percent because other chrome producers have suspended their operations and iron ore production has been on hold since February this year," the official said.
The official added that platinum has been performing well but some platinum operations have been closed while those which are operating seek to increase production by March 2009.
The mining sector has been facing problems, including shortage of foreign currency, as operations usually require huge working capital; insecure property rights; and investment constraints as spending has been on the downward trend since 2000.
Comments 1 to 3 of 3 Post a comment
70kg of gold is around $2 million US worth. That is not much money if its the main currency earner for a country. It would not even pay for the cars mugabe bought everyone as an election bribe!
I love it, Mineral production declined because of foreign currency shortages, So where did the money go for all the gold they sold for the producers. Certianly did not go to the owners, didn't go to sanitation or clean water production. Must have been the policy uncertainties, uncertian whether the policies at present in place might bring about a change in government, so better nick the loot while we still can.
What happened to all these sanctions on mining? Sounds like there is still a market place for Zimbabwean minerals out there.