Home » Business » Mineral Production Figures Down… but Gold Glitters As Deliveries Top 11,11 Tonnes

The value of Zimbabwe’s mineral production declined to $1,46 billion in nine months to September this year from $1,5 billion in the same period last year, latest statistics have shown. The value of gold production during the period under review stood at $501,62 million with about 12 363 tonnes mined, according to figures obtained from Mines and Mining Development Ministry.

Already, gold deliveries to Fidelity Printers and Refiners have surpassed the minimum 10 tonnes required for the country to be re-accredited by the London Bullion Market Association.

In the 10 months to October, gold deliveries reached 11,11 tonnes.

Zimbabwe has to refine a minimum 10 tonnes per annum to be re-admitted on the London market, the world’s biggest gold trading centre, according to the LMBA.

This means the country needs to have access to major global gold buyers.

At the moment, Zimbabwe is selling its gold through Rand Refineries in South Africa and is charged 0,3 percent of the total earnings.

Zimbabwe was deregistered by LMBA after production fell to below three tonnes in 2008 as a result of delayed payments to miners by the RBZ, which was the sole buyer of the metal.

In other metals, the value of platinum output was $388,28 million with 9,4 tonnes mined.The value of nickel production was $158,18 million with 12,8 tonnes were mined.

High Carbon Ferrochrome value was $106,09 million from 112,265 tonnes extracted while the value of coal stood at $41,21 million from about 2,74 tonnes mined.

The value of chrome production came in at $$27,36 million from 282 200 tonnes extracted. The mining sector has anchored the rebound of the economy since 2009.

Zimbabwe’s mining sector grew by 35 percent between 2009 and 2011, according to the Chamber of Mines, but the momentum has slowed due to slump in global mineral prices while some mining companies have cut back on investments.

The sector has since overtaken agriculture as the mainstay of the economy, now accounting for more 50 percent of the country’s exports. However, the country is not realising the optimal benefits from the extraction of mineral resources because the bulk of the metals are being shipped in their raw form.

Analysts say there is also a need to ensure that the sector’s fiscal obligations are met through enhanced compliance in terms of remittance of mining tax revenue.

Source : The Herald

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