adminOn Friday, the price of spot gold soared to a record high above $1 720 per ounce as traders remained sceptical of the ability of policymakers in the major economies to inject appropriate strategies to stimulate the global economy into a confidence-boosting and sustainable growth trend.
In January, Zimbabwe produced 1 153 kilogrammes of gold reflecting a 59 percent increase compared to 725kg achieved during the same period in 2011.
“Gold production increased 38 percent in 2011 to 11 645,3kg from 8 443,4kg in 2010. Despite Zimbabwe being a high cost producer, the rising gold prices are expected to make it more viable for most mining houses to increase production as the revenue per unit continues to head northwards ahead of the unit cost of production.”
KSB noted that the positive growth trajectory presently being experienced in prices of metals such as silver and platinum would see the country having enormous opportunity to build an economy with a durable foundation anchored on the mining sector given well-crafted policies that cater for various stakeholders.
It called on the Government to create a more conducive operating environment for the mining sector in order for the nation to reap the maximum possible benefits out of the rising prices.
“Despite major challenges like lack of capacity, erratic power supplies, political uncertainty and the Indigenisation and Economic Empowerment policy, the mining sector is anticipated to remain the driving force behind overall economic growth in 2012 and is expected to grow by 15,9 percent.
“The continued favourable gold prices on the international markets should see the 15 000kg target for 2012 gold production for the nation remaining realistic.”
Online Reporter