As gold output rise, Zimbabwe want to be re-admitted at the LME

Zimbabwe said its gold output is rising this year and it will try to re-enter the London Metals Exchange.

Country's finance minister Tendai Biti however warned discord over indigenisation and empowerment regulations targeting foreign-owned mining companies could stifle investment in the sector.

According to country's Chamber of Mines, local production had risen to 2 453,4 kg in the first quarter this year, up 27% from 1 931,1 kg recorded same period last year.

The Chamber forecast that the country's gold production will reach 13,000kg this year and believes that an investment of $1 billion in the sector could catapult output to 50,000kg in the next five years.

A figure that makes Zimbabwe eligible for readmission into the London Bullion Market, but far below the country's all time high output of 27 tones in 1999.

Gold output reached a record 29,000kg in 1999 but declined to a record low of 4,200kg in 2008 as a result of economic recession and mine closures.

Government, through the Ministry of Youth Development, Indigenisation and Empowerment last month gazetted regulations compelling foreign-owned mining companies with a net asset value of $1 to dispose of a 51% stake to black Zimbabweans within six months.

This prompted the Chamber of Mines of Zimbabwe to engage government on the controversial regulations.

The chamber proposed to government a minimum indigenisation quota of 26% equity with the balance of 25% made up of credits arising from corporate social investments, support to the small scale mining sector, local procurement, skills development, release of ground and establishment of new businesses.