Gold output to rise

output to optimal levels.
This will translate to earnings of US$2,4 billion at current prices of US$1 530 per ounce.
The Chamber of Mines has already projected gold production would top 13 tonnes, which is worth US$651,8 million at current prices, this year, up from the eight tonnes forecast last year.
Production of the precious metal has significantly improved since the Government adopted the multi-currency system in February 2009, having first liberalised the marketing of all minerals.
The potential for an increase in output remains, but challenges around securing affordable funding remain the biggest constraint.
Revised estimates from the Chamber of Mines indicate the mining sector requires US$6 billion to raise output to optimum levels.
Chamber president Mr Victor Gapare said due to revised expansion plans and new projects coming in, the sector requires US$6 billion to retool.
“People have been looking at their projects and new projects are coming through,” he said. “We update those figures every year. US$6 billion is what the mining industry requires.”
If the funding were secured, the industry would be able ramp output to at least 50 tonnes a year within six to seven years.
Mr Gapare said if the mines were adequately capitalised, the chamber expected significantly increased output for other minerals.
Most mining companies are operating well below capacity, averaging 40 percent, due to limited funding to scale up production.
But despite challenges around securing affordable capital, the companies could produce well beyond initial output targets this year.
Platinum Group of Metals production is seen reaching 30 tonnes by the end of this year, while coal is projected at 10 million tonnes and nickel is seen reaching 25 000 tonnes this year.
But this will largely depend on Bindura Nickel Corporation resuming production, mainly at its Trojan Mine. BNC has been struggling to raise the US$26 million to fund a restart of the mine, despite a competent person’s report confirming the mine possesses significant commercially viable resources.
The Chamber of Mines said much work was required in Chiadzwa diamond fields, but expectations were that diamond output would rise significantly, complemented by increased output at Murowa.
But Mr Gapare was quick to point out that Zimbabwe needed to quickly address the perceived risk associated with the country to enable local companies to raise capital offshore.
The mining sector is projected to grow by 44 percent this, supported by rising metal prices, especially gold, platinum and nickel.