Business / Economy
Zimbabwe gold output expected to hit new peak
08 Apr 2011 at 16:22hrs | Views
ZIMBABWE'S gold output is projected to surpass its all-time peak reached in 2009, a five-year forecast by the Chamber of Mines has said, indicating that production would be sustained by firming prices and increasing demand.
Gold output touched its record high of 29 tonnes in 1999, but dipped during the crisis decade that ended with dollarisation in 2009.
Output slumped to an all-time low of 4,2 tonnes in 2008 after all but one gold mine shut down during that year.
In a five-year forecast for the gold sector, the Chamber of Mines projected output to rise to at least 13 tonnes this year, from nine tonnes last year, and hit a new peak of around 50 tonnes in five years.
The projections were disclosed by the chamber's chief economist, David Matyanga, in a presentation compiled for investors.
The output gap in the gold industry is currently estimated at between 60 and 70 percent, but is seen ramping up steadily towards the projected peak, subject to new investments in exploration and mine development.
The recovery of the gold sector started in the second quarter of 2009 when mines started re-opening one after the other, incentivised by the liberalisation of gold marketing, the recovery of global commodity prices and the adoption of multiple currencies, which eliminated foreign currency surrender requirements.
The price of gold has recovered to about US$1 400 per ounce from around US$800 an ounce at the beginning of the reforms in 2009.
Gold output touched its record high of 29 tonnes in 1999, but dipped during the crisis decade that ended with dollarisation in 2009.
Output slumped to an all-time low of 4,2 tonnes in 2008 after all but one gold mine shut down during that year.
In a five-year forecast for the gold sector, the Chamber of Mines projected output to rise to at least 13 tonnes this year, from nine tonnes last year, and hit a new peak of around 50 tonnes in five years.
The projections were disclosed by the chamber's chief economist, David Matyanga, in a presentation compiled for investors.
The output gap in the gold industry is currently estimated at between 60 and 70 percent, but is seen ramping up steadily towards the projected peak, subject to new investments in exploration and mine development.
The recovery of the gold sector started in the second quarter of 2009 when mines started re-opening one after the other, incentivised by the liberalisation of gold marketing, the recovery of global commodity prices and the adoption of multiple currencies, which eliminated foreign currency surrender requirements.
The price of gold has recovered to about US$1 400 per ounce from around US$800 an ounce at the beginning of the reforms in 2009.
Source - Byo24News
