admin
Gold production in Zimbabwe is on a rebound following a slump that hit the country’s mining industry in the past decade due to the adverse economic conditions that prevailed. At the moment, the gold mining sector is operating at 44 percent capacity due to lack of capital among other challenges.
Stakeholders have said Zimbabwe’s gold sector needs $1 billion in the next five years to operate at full capacity.
An economic commentator, Mr Peter Mhaka said: “Gold production is bound to reach its 1999 peak levels if the country invests in measures aimed at addressing the challenges faced by the mining industry.”
Electricity supply constraints, lack of policy initiatives to attract local and foreign investment, huge fiscal burdens imposed on the mining sector and limited investment in mineral exploration are some of the challenges that continue to derail productivity in the mining industry.
In 1999, gold production reached the 27-tonne mark while last year 13 tonnes of the yellow metal were produced generating $627 million in export receipts.
This reflects that gold output rose by 38 percent for the first time since 2006, a development that saw Zimbabwe returning on the London Bullion Market from which it was suspended when the mineral output dwindled to less than 10 tonnes a year.
The mining industry is looking at producing more than 14 tonnes of gold this year.
The liberalisation of the country’s economy in February 2009 has seen the mining industry becoming a key sector for economic growth and development contributing an estimated 13 percent to the Gross Domestic Product in 2011.
Online Reporter