Company chief executive, Collen Gura, said recently erratic power supplies had disrupted mining operations and expressed fears that this year’s output could continue to plummet given the persistent power shortages experienced in the country.
Metallon, Zimbabwe’s biggest gold mining group and contributing 50% of cumulative national gold output, has also been hurt by incessant rains, which have seen some mines flooded.
Key subsidiary, Redwing Mine, which constitutes about 30 to 40% of the group’s gold reserves, is currently closed due to water logging that will take several months to clear.
Zimbabwe’s gold output fell 37 percent last year from about 11 tons in 2006 to just over seven tonnes, according to figures released by the Chamber of Mines
Platinum, on the other hand, registered a 13% increase as 5 665.32kg of the “white metal” were produced, up from 4 997,72 kg.
Asbestos output fell sharply from 8 127 tons during the first 10 months of 2006 to 4 157 tons between January and October 2007.
Copper output fell slightly to 2 581 tons from 2 681 tons, while coal production slid from 2,1 million tons in 2006 to 2 million in 2007.
The target for gold had been set at 10 tons last year and production was likely to fall to levels below 4 tons this year, mining players have predicted.
“It is not surprising. Gold mining firms have been the hardest hit mining houses in Zimbabwe. There have been delays in getting foreign currency proceeds from the Reserve Bank. This made it difficult to acquire some raw materials and other inputs,” said a mining researcher with a local gold mine.
Post published in: News