The contribution came on the back of a 143 per cent increase in mineral exports after Zimbabwe raked in US$1,7 billion from mineral exports in 2010. The Chamber said the increase in exports was attributable to increased gold exports after the liberalisation of the mining industry and firming gold prices.
Prices of gold are projected to remain firm in the US$1 200 to US$1 800 per ounce range having recently exceeded US$1 500/ounce in the last few weeks. Exports were also significantly increased by shipments of ferrochrome and diamonds as a result of the certification of Zimbabwe by the Kimberley Process.
This underlies the Government’s latest position that the mining industry will drive economic recovery and growth after a decade-long economic instability. The sector generated 65 per cent of the country’s total exports and contributed 20 per cent to Gross Domestic Product for 2010.
However, power shortages, the liquidity crunch, lack of capital negative public about Zimbabwe have constrained optimal performance in the sector. Despite these challenges, the mining sector is expected to grow by at least 43 per cent this year and drive the projected 9,3 economic target by year-end.
Post published in: Business Analysis