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Zimbabwe's gold deliveries increases

by Business reporter
11 Jul 2013 at 06:27hrs | Views
THE country's gold deliveries for the month of April increased by 9,25 percent from 990,35kg in March to 1 081,93kg in April 2013 on the back of an increased output by large-scale producers.

According to figures released by the African Development Bank, deliveries by primary producers grew 19,33 percent to 917,38kg from 768,79kg in March.

Gwanda-based Blanket Mine recorded a 14 percent growth in gold output for the four months to April 2013 producing 10 463 ounces from 9 155 ounces in the first quarter of 2012 on the back of strong prices of the bullion.

In April, deliveries by small-scale miners fell 25,73 percent to 164,55kg in the period under review from 221,57kg in the previous month.

The global price of gold in the month of April declined from US$1 560 per ounce on April 5 to US$1 410 per ounce on April 19.

AfDB said the decline in the prices of precious metals in the first three weeks of the month could be attributed to the unanticipated slowdown in the Chinese economy in the first quarter of 2013 which signalled a setback in the global economy and hence a lower demand for precious metals.

The depreciation of other currencies including the Australian dollar and Japanese yen also contributed to the decline.

The prices, however, firmed to US$1 467 in the last week of the month due to the increased physical demand from Asia.

On a year-on-year basis, total gold deliveries declined 2,73 percent to 1 081,93kg in April 2013 from 1 112,36kg during the same period last year.

During the period under review, deliveries by primary producers went up 4,32 percent from 879,36kg while deliveries by small-scale producers declined 29,37 percent from 232,99kg in 2012 to 164,55kg.

Production by small-scale miners has been declining in the past years.

In April last year, production plummeted to two tonnes from 17 tonnes recorded nine years ago.

Small-scale miners have said the exorbitant mining levies and punitive policies are responsible for the declining production saying Government policies were not promoting small-scale mining.

The average share of mining to the gross domestic product also grew to an average of 16,9 percent during the same period, eclipsing agriculture.

In terms of earnings, minerals exports surged in 2011 to US$2,45 billion from US$1,6 billion in 2010 driven mainly by platinum, gold and diamond production and also buoyed by booming international prices.

Source - herald