Metal prices slow growth

Low metal prices are slowing economic growth in the country. Mning, which is a key sector exected to underpin Zimbabwe's future economic growth, has been hit hard by the effects of falling international commodity prices.

Metal prices fell by an average 25 percent during the first half of the year, causing a negative impact of substantial reduction in revenue. The weak metal prices are also now posing a huge threat to viability of many mining operations. In its recently published financial statements, RioZim Limited reported that its revenue has been reduced by $7 million, as a result of falling metal prices, resulting in the company posting a loss after tax of $2.3 million.

Gold price fell from an average $1,651 per oz in the first half of 2012, bottoming to $1,196 per oz June 2013, whilst averaging $1,497 per oz for the first half of 2013. Cotton has also been affected by weak international prices, resulting in farmers getting an unfair return for their white gold.

Post published in: Business

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