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Bianca Mlilo, Business Reporter
PRODUCTION of gold by small-scale miners has increased by 54 percent compared to the same period last year, while overall output increased by 21 percent, a report has revealed.
The first quarter mining performance report released by the Chamber of Mines Zimbabwe says that small and custom millers, which make up 37 percent of producers had increased production from 1,215 tonnes to 1,876 tonnes in the period under review.
“The mining industry recorded a robust performance in the first quarter of 2016 compared to the same period in 2015, with a majority of minerals recording stellar output growth,” reads part of the report.
Gold which benefited from both firm prices and increased output recorded a 17 percent increase in value from $161, 67 million generated in the first quarter of 2015 to $189, 65 million in the same period in 2016.
“With the exception of gold, all precious metals were trading below the levels recorded in the first quarter of 2015. The average gold price for January at $,1097,38 was 12,3percent lower than that of the corresponding period of 2015.”
The report said in March 2016 the average gold price was 5,7 percent higher than that of the same period of 2015.
The report noted that the higher gold price was a positive development for the Zimbabwean gold sector.
It further said that sustained higher prices were needed to place the gold sector on a sound footing, given the need to recapitalise and grow the sector.
“Total 2015 volumes of gold were 4,180kg, while total 2016 volumes were 5,060kg, giving a change of 21 percent,” it says.
“Despite the robust performance in the volumes of minerals produced and on the backdrop of depressed prices, the total at mine value for the minerals produced declined 3,45percent to $419,96 million in the first quarter of 2016 compared to $434,96 million in the same period last year.
“Outside gold, platinum and iridium all minerals recorded declines in value in the first quarter of 2016 compared to the same period last year.”
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