GOLD production decreased to 6 727,36kg in six months to June from 8 593kg achieved in the same period in 2012, partly due to a free-fall in international commodity prices.
GAMMA MUDARIKIRI OWN CORRESPONDENT
According to statistics released by the Zimbabwe Chamber of Mines yesterday, gold production recorded a 27,42% decline although the mineral remained the best in terms of earnings contributing $325,75 million in revenue during the period.
Gold output is expected to reach 17 000kg at year-end, from 14 742kg last year.
However, producers have indicated that they are most likely not to meet the target due to softer international gold prices and local systemic factors such as inadequate energy and sub-optimal cost structures.
International gold prices fell by 1,9% to $1 279,24 an ounce, it’s lowest since July last year. The drop in the gold price had a ripple effect on Zimbabwe’s mineral production.
In the same period, platinum production improved to 6 599,49kg valued at $291,91 million, which was a slight increase from last year’s production of 6 469,5kg of gold worth $285,01 million.
Platinum output was this year expected to increase to 12 500kg from 10 525kg achieved in the previous year although the target might be missed as international prices continue to weaken against high costs of production.
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Chamber of Mines said in the same period, palladium production reached 5 6068kg, earning $102,2 million while nickel production was at 4 887,33 tonnes, raking in $64,515 million. Mining remains a key driver of the economy although this year the sector is in distress and is expected to miss its initial growth target.
Outgoing Finance minister Tendai Biti recently slashed economic growth rates with the mining sector having the highest reduction to 5,4% from 17% due to a cocktail of challenges including high production costs, expensive labour, power, high royalties, and corporate income tax, value added tax, capital gains tax, local authority charges, licence and registration fees, among others.
Due to a myriad challenges, mineral production as of June was down to $930,9 million from $1,133 billion achieved in the previous year, as the mining sector continued to battle with constraints in funding attributed to limited investment.
The sector needs an estimated capital of between $5 billion and $7 billion to fully recapitalise.
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