Zimbabwe's mineral production in 4 months at $582.8 million

Zimbabwe's mineral production in the four months to April was at $582.8 million with gold production leading in terms of value. According to the latest figures from the Chamber of Mines, mineral production in the period was down 11.2% from the comparable year ago period.

Gold production in the period was at $224.7 million from production of around 4,434kg. Gold Production is this year expected to reach 17 000kg from 14 742kg last year as the government is set to regularise and fund the operations of small-scale and artisanal miners.  

Government believes that small scale miners can produce upwards of 40% of national production if proper funding is availed to them. Last year small scale miners contributed 30%.

The mining sector is forecast to grow 17.1% this year from the 10.1% achieved last year, according to the chamber. Platinum output is expected grow to 12 500kg from 10 525kg while in the four month period platinum production was at 4 727kg.

However, analysts say the mining sector might not meet the 17% growth target projected by government due to softer international commodity prices and local systemic factors such as inadequate energy and suboptimal cost structures.

The sector has been dogged by a cocktail of charges which include royalties, corporate income tax, value added tax, capital gains tax, local authority charges, Environmental Management Agency charges, licence and registration fees, among others.