Home » Education » JAN-SEPT REVENUE FROM ZIMBABWE’S MINING SECTOR FLAT AT 1.38 BLN USD

Revenue generated by Zimbabwe’s mining sector totalled 1.38 billion US dollars in the first nine of the months year compared with 1.34 billion USD in the same period last year, as depressed world prices hit earnings, according to the Chamber of Mines of Zimbabwe (CoMZ).

During the period, major minerals such as gold, platinum, nickel, and palladium recorded double digit growth in output while production of diamonds, chrome and coal dipped, according to the latest report from the Chamber.

“The general price trend for the minerals has been depressed in 2016 compared with 2015 except for gold which recorded a 6.8 per cent increase in price,” said CoMZ chief executive Isaac Kwesu.

Nearly half of the revenues were generated through gold, which earned 648.6 million USD during the period, up from 532.5 million USD in the same period of 2015.

Platinum saw earnings rise four per cent to 298.5 million USD in the nine months while coal revenue jumped six per cent to 66 million USD.

Kwesu said gold miners poured in millions in new investment into their operations to boost production during the period.

The rest of the major minerals however recorded declines in earnings, with diamonds, at minus 43 per cent, registering the biggest fall to 73 million USD.

Depressed international prices took their toll on minerals such as palladium which saw earnings declining five per cent despitee overall production surging 21 per cent to 8,760 kilogrammes.

Rhodium and ruthenium which recorded a 17 per cent and 18 per cent increase in output respectively, also saw revenues going down 25 per cent and eight per cent.

“The industry remains fragile notwithstanding the growth,” Kwesu said. Obstacles impacting on viability of the sector remained unchanged and included high costs structures as well as high mining fees.

Kwesu said current foreign currency shortages were also adding to the challenges facing the sector, which requires about 1.0 billion USD annually to import inputs and other consumables.

Source: NAM NEWS NETWORK

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