Chronicle Editor
ZIMBABWE’S mineral revenue is projected to reach $2.5 billion this year up from $2.3 billion last year, the Chamber of Mines has said.
Gold output is expected to reach a new record of 30 tonnes while platinum production is expected to increase to 15.5 tonnes compared to last year’s 14.2 tonnes.
According to The Source, Chamber of Mines economist Mr Pardon Chitsuro told a business meeting in Harare yesterday that:
“The mining industry is hopeful that all short term viability matters that include the high operating costs, foreign exchange constraints, access to capital and general ease of doing business reforms will be resolved during the year.”
He however said the sector was in ‘dire need of capital’ to replace obsolete equipment.
“In 2018, the mining industry requires around $777 million to optimise production, with $401 million needed for sustaining operations and $376 million for replacement and expansion capital,” said Mr Chitsuro.
Mining remains a critical source of foreign currency for Zimbabwe contributing 59 percent of export earnings in 2017.
As part of efforts to promote investment in the mining industry, the new political dispensation has moved in to amend the Indigenisation and Economic Empowerment Act with the 51/49 threshhold now only applying to gold and platinum sectors. — The Source/Business Reporter
derick.khumalo