(NEWZIMBABWE) Zim looks to double gold output

Zim looks to double gold output
by Business Reporter
19/08/2010 00:00:00

THE Zimbabwe Chamber of Mines says the country is on course to double last year’s gold output despite regular disruptions in electricity supplies. In a statement, the chamber said the country had produced just over four tonnes of gold in the first half of 2010.

“The country produced 4.03 tonnes between January and June, and based on six months' production, current projection for the year is 8.047 tonnes,” the chamber added in its statement.

Gold production had plunged to a record low of 3 tonnes in 2008 as mines choked under an inclement local operating environment characterized by hyperinflation as well as acute foreign currency and electricity shortages.

Last year saw a marginal improvement to 4.9 tonnes.

At its peak, Zimbabwe produced 27 tonnes of gold in 1999.

A production target of 20tpa over the next five years has been set by the chamber, but the Chamber said this could be held back by frequent power cuts as well as concern over the government’s empowerment laws, which seek to transfer control of foreign-owned firms to locals.

Mining has become of the country’s growth sector’s driving recovery from a decade-long recession blamed on economic sanctions and political instability.

Last year’s decision to dump a worthless local currency helped tame hyperinflation and stabilise the economy.

The currency change and a spat of positive policy measures by the coalition government saw most mines which had either completely shut down or scaled operations back to care and maintenance come back into production.

The Chamber of Mines says this year's gold output could be higher than the initially projected 7 tonnes.