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Rumbidzayi Zinyuke Business Reporter
The country’s gold deliveries increased by 15 percent in July 2013 to 1 189, 27 kilogrammes from 1 033, 49 kg in June on the back of an increased output from both small scale and large scale miners. According to figures released by the African Development Bank, deliveries by small scale producers went up 21,82 percent to 255,22kg from 209,5kg in June while deliveries by primary producers grew by 13,36 percent to 934,06kg from 823,98kg.
Shortage of funding to procure new and modern equipment remain the biggest challenge to increasing gold production in Zimbabwe and has contributed to the decline of production by small scale miners in the past few years.
In 2005, Zimbabwe produced about 14 023kg of the yellow metal with small-scale miners contributing more than 50 percent. The country produced a total of 14 742kg of gold last year with small scale mining’s contribution to the production falling to two tonnes in April.
Small scale mining production recovered for the first six months of this year accounting for 65 percent of total production. Output is projected to reach 17 000 by the end of this year if weakening global prices do not weigh down production.
On a year-on-year basis, total gold deliveries declined by 11, 12 percent to 1 189,28kg in July this year from
1 338,05 in July 2012.
Deliveries by primary producers declined by 13, 75 percent to 934,06kg in July 2013 from 1 082,99kg in July last year while deliveries by small-scale producers grew by 0,06 percent to 255,22kg this year from 255,06 kg last year.
Prices of precious metals were on an upward trend for the month of July, showing signs of recovery from a swift decline witnessed in June.
The increase in the prices was attributed to the depreciation of the United States dollar against the euro, Japanese yen and the Canadian dollar as well as the slow pace of recovery in the US equity markets, which serve as alternative investment to gold.
However, the depreciation of the Indian rupee, which led to reduced demand for gold in India, a leading importer of gold, hampered any further increases in the prices of precious metals.
Gold prices rose from as low as US$ 1 198 per ounce at the end of June to US$ 1 223 per ounce, before closing the month of July at US$ 1 329 per ounce.
Online Reporter