Chamber of Mines mulls platinum body

the country are facing.
“We are mulling plans to establish a Platinum Producers’ Association, which will be set up as a sub-committee of the chamber.
“The association will help address challenges in the platinum sector,” he said.
Despite the macro-economic problems in the country, characterised by electricity shortages and liquidity challenges, Mr Chitando said the platinum sector was one of the few mining sub-sectors whose producers have been operating at full capacity.
Players in the sector have, however, registered discontent with the new mining fees gazetted by the Government in addition to the doubling of royalties for platinum producers.
South Africa-based Aquarius, which owns 50 percent of the Mimosa Platinum Mine in Zvishavane, said the mine could take a multimillion-dollar knock on profitability each year as a result of the adjustments.
“Material increase in ground rental, mining licensing and mineral export licensing fees, among others, were confirmed in early February by the publication of a Government Gazette to that effect.
“This will result in an additional charge for Mimosa of approximately US$6,8 million each year,” said Aquarius.
Meanwhile, the Chamber of Mines president said gold output this year was projected to reach 17 tonnes, after meeting the 2011 target of 13 tonnes.
Although last year’s gold output was in line with requirements for the country’s relisting on the London Bullion Market Association, Mr Chitando said it was still way below the country’s highest gold output of around 27 tonnes, which was achieved in the late 90s.
Mr Chitando also lamented base metal production in general, which he said was below capacity because of “lack of capital and other viability problems”.
The limited production capacity of most mines has mean that the country failed to take full advantage of international metal prices, which were generally favourable during the course of last year.
He, however, said the chamber was currently engaging the Government on how to improve the macro-operating environment for mining firms in the country.
“Initiatives are, however, underway to address these challenges to ensure greater mining sector growth, and to this extent discussions are ongoing with the Ministry of Mines and Mining Development,” he said.