HARARE- Zimbabwes gold production dropped 49 percent last year as a result of a hostile operating environment and lack of funds for exploration purposes.
“During the year 3,576 tonnes was produced compared to 7,018 tonnes reported in 2007, a decline of 49 percent, the Chamber of Mines said in its annual report.
“The major cause of the decline in production was the restricted working capital for producers arising out of the Reserve Bank of Zimbabwe withholding payments for gold lodged with Fidelity printers and Refiners. By October most mines had been laced on care and maintenance.”
Yellow metal production earnings during the first six months of the year also declined to 62.1 million US dollars compared to 93.5 million dollars earned the previous year.
While gold earnings and productions plummeted, platinum production increased by 8.5 percent in 2008 compared to 2007.
Annual platinum production increased from 5,085.74kg in 2007 to 5.495.10 kg in 2008.
During the first six months of last year, the mining shipments earned the country 748.6 million dollars compared 852.9 million recorded in 2007.
The mining sector has over the past years been affected by frequent electricity outages, fuel shortages, foreign currency shortages, brain drain, lack of capacity to re-open re-closed mines or new ones, and scaling down of development programmes.
Post published in: Economy