Gold production by small-scale miners rises to 489,5kg

The African Development Bank (AfDB) said although the small-scale miners’ gold contribution to Zimbabwe had declined in November the role of the miners was becoming more pronounced in the country’s extractive industry.
AfDB in its December 2011 economic review said small- scale miners’ contribution to Zimbabwe’s gold output declined by six percent in November 2011.
Statistics from Fidelity Printers and Refiners show that small-scale miners produced 260,6kg in September to 388,1kg in October while in November output went down to 348,5kg.
In December, gold output by the small-scale miners increased to 489,5kg.
Continued growth in the gold sector is however under threat following Government’s decision to increase royalties on gold from 4,5 percent to seven percent while those for platinum would double to 10 percent with effect from 1 January 2012.
The Chamber of Mines has said Zimbabwe’s entire mining sector requires more than $5 billion in the next five years to operate at full capacity and translate to an increase in the sector’s contribution to the fiscus.
The mining body said the gold sector was underutilised at 44,4 percent based on current production.
However, in the 2012 national budget, the Government set aside $1 million under its Mining Industry Loan Fund to increase capacity.
Last year, as part of efforts to support small-scale miners’ activities, the Government secured $1 million worth of mining equipment comprising compressors and stamp mills that was distributed to small-scale miners.
It is hoped that gold volumes would generate $823 million in 2013 in export receipts, up from $334,2 million in 2010 and the $627 million in 2011.
In 2010, the mining sector contributed 65 percent of national exports.
It also amounted to 11,2 percent of Gross Domestic Product in 2010 and around 13 percent in 2011.