HomeNewsMinerals revenue nears $700m

Minerals revenue nears $700m

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Zimbabwe’s mining sector produced minerals worth $692 million in the first five months of the year, with gold and platinum being major contributors — statistics from the Chamber of Mines of Zimbabwe (CMZ) have shown.

The minerals included in the statistics are chrome, copper, gold, graphite, high-carbon ferrochrome, nickel, rhodium, ruthenium, palladium and quartz.

According to figures from the CMZ gold and platinum raked $505, 7 million during the five months under review.

Gold earned $207 million from 4 561 kilogrammes in the period under review while platinum earned $198 million from 4 254kg.

The country is expected to produce at least 10 000kg of gold this year.

Commodity prices of gold and platinum are expected to continue on an upward trend.

Gold prices increased by 4,8% to $1 421 per ounce from $1 356,4 per ounce between January and March this year.

In the first quarter of this year platinum output declined by 4% but according to the figures for the five months of this year the output for platinum increased.

A total of $111 million was raised through platinum production in the first quarter of the year.
The country expects an output of 12 000kg of platinum this year.

Production levels of minerals such as palladium, platinum and graphite increased during the period under review.

Chrome output rose to 241 371kg for the five months period from 134 954kg in the first quarter of the year, earning a total of $29 million from $17 million in the first three months of the year.

Paladium output was 3,349kg and a total of $67 million was garnered while high-carbon ferrochrome raised $64 million from 65 604kg produced in the five months period.

According to the recently launched Medium-Term Plan (MTP) 2011 to 2015, the mining sector has the capacity to sustain double digits growth but continued to face numerous challenges.

“Shortage of funds for recapitalisation and working capital finance remains a huge challenge facing the sector.

“As a capital intensive sector, mines are grappling with securing reliable sources of long-term capital to finance their operations,” reads part of the MTP document.

The mining sector is expected to register a 44% growth this year.

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