Published by the government of Zimbabwe
30 January 2009
Harare — THE mining industry is poised to benefit from the projected rise in the global metal prices this year, analysts have said.
The price of platinum has bounced by up to 30 percent since early December on the international market.
The speed at which it has recovered has left local analysts believing there is hope after all in the mining industry.
The local mining industry was one of the hardest hit sectors last year with gold deliveries falling by 49 percent, but analysts have urged players in the mining sector to mobilise resources and gear up for the anticipated boom.
Chamber of Mines chief executive Mr Joseph Malaba said, in relative terms, gold has been stable given the challenges in the economy.
"In December we received 49 kilogrammes from one mine against an expected peak production of 2 300 kilogrammes per month in a stable economy," he said.
Mining companies such as Zimplats and Bindura Nickel Corporation last year had to suspend capital projects and scale down operations owing to the fall in metal prices on the international market.
"At the present moment, the future of the mining industry solely depends on the monetary and fiscal policies, once the budget has been announced we will know what the future holds.
"And it is only then when we will know if investors will be willing to invest in the economy," he added.
Mining analyst Mr Patrick Musavaya urged players in the industry to prepare for the anticipated boom by setting aside resources for investment.
"The mining industry is slowly getting out of the woods and this would be confirmed in the reporting season as the companies bring out their latest financial results.
"The market seems to be factoring in better, long-term prices already and it would be wise for the players to set aside resources for future investments," he said.
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