Firming price to boost gold production

According to the annual gold price report  compiled by Price Water House Coopers, prices for the bullion are expected to peak at $ 2 000 per ounce   this year.
Growing demand for the commodity in China and India is expected to spur prices with the two countries accounting for 41 percent of total gold consumed in 2010.

Gold production in Zimbabwe last year reached an estimated twelve tonnes, up from eight tonnes mined the previous year, buttressed by higher commodity prices and the recapitalisation of major mines.
Production had fallen to a record three tonnes in 2008 at the height of the economic meltdown precipitated by economic sanctions that the United States and its Western allies imposed on the country.

Mines and Mining Development Deputy Minister Gift Chimanikire said the increase in international prices was good news for the country as it    would undoubtedly boost production, including for small scale miners.
“We also take note of the fact that big miners like How Mine and Blanket Mine have increased their output markedly through fresh injection of capital. Others like Freda Rebecca have reached 100 percent production capacity.”

Deputy Minister Chimanikire said the government would supply small scale miners with equipment to boost production.
“We have more small scale miners coming through and other big mines showing interest in commencing operations here.
“Indications are that production will continue to rise translating into increased revenue inflows for the country,” he said.

Gold is contributing a significant part in the country’s export receipts generating $334, 2 million in 2010 and believed to have breached $627 million last year.
Next year the mineral is expected to generate $823 million.

Traditionally gold had been the country’s major source of foreign currency but liquidity challenges have hamstrung the mining sector preventing it from renewing equipment.
Adoption of the multicurrency system in 2009 has seen mineral production increasing steadily buoyed by the stabilising economy. — New Ziana.