Fuel crisis hinders mining ops

irect fuel imports, which require forex. The deepening fuel crisis has clouded prospects for the sector, which contributes four percent of Zimbabwe’s GDP and is also the third largest foreign currency earner.
“Miners who are not exporting are finding the going extremely tough,” said a senior miner. “They have to rely on what is available on the domestic market for their supplies and this is grossly insufficient to allow for continuous production. The sector can do wonders under conditions of adequate supply.”
Zimbabwe has vast deposits of gold, platinum group metals, nickel and coal.
Besides the foreign currency squeeze and fuel problems, the sector is also dogged by proposed mining reforms that have caused panic among investors. Most mines have put all expansion projects on ice after proposed reforms compelling all foreign-owned mines to cede majority stake to government. The industry was also battling to contain operating costs in a hyperinflationary environment that has pushed the prices of inputs to unsustainable levels.
“It is no longer possible to undertake long-term planning, an activity critical to the survival of the industry,” the official said.
At least 50 mines have closed since 1996, according to the Chamber of Mines, mainly because of viability problems.