MINERAL output in February this year was depressed with gold and nickel registering a decline in production.
Business Reporter
Statistics from Treasury show that gold output decreased to 831,3 kilogrammes in February from 926,8kg in January.
“This was mainly on account of production slippages from large scale producers. Similarly, nickel output for the month slightly decreased to 1 557 tonnes from 1 559 tonnes produced in January 2014,” the Treasury said in a state of the economy report. Total gold output for both small and large producers in February was 831kg compared to 926kg the previous month.
However, the Ministry of Finance in the state of the economy report released recently said the output for chrome, platinum, palladium and rhodium improved in February.
Output for platinum increased marginally to 1 044kg in February from 1 015kg in January. “Reflecting increased platinum output, production for the other platinum group of metals such as palladium and rhodium increased from 809kg and 93kg in January 2014 to 832kg and 96kg, respectively, in February,” Treasury said.
The output for chrome increased to 36 794 tonnes in February from 28 207 tonnes due to the increase in capacity utilisation at Zimasco.
In 2013 the mining sector production figure stood at $2,3 billion from $1,9 billion in 2012.
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Gold contributed $572 million followed by platinum $494,4 million and diamonds were at the third position at $452,9million.
The sector continues to be the major driver of the economy since the country introduced the multi-currency in 2009.
The mining sector is expected to grow by 11,4% at the back of investments and a strong performance in gold, diamonds , nickel and coal.
Treasury said in January money supply growth declined by 1,1% to $3,888 billion in January.
Domestic credit declined by 2,8% to $3,954 billion in January from $4,068 billion in December reflecting the financial sector’s inability to effectively support the real economy with affordable financing.
