Gold production falls 8%

Published: 16 June 2014

ZIMBABWE'S gold production fell 8 percent to 5 500 kilogrammes in the five months to May from a year earlier, according to figures obtained from the Chamber of Mines.

Gold mined during the period was 5 517kg from 6 022kg produced in five months to May last year. The value of the precious mineral was $225,95 million.

In four months to April this year, gold accounted for about one third of the total value of mineral produced, the figures show.

The bullion accounted for more than 30 percent of the total value produced in 2013. Gold output for last year was 14 tonnes, down 4,49 percent at a value of about $626,11 million.

Gold remains the mainstay of mineral production in the country and the Government is targeting to become one of the top five gold producing countries in Africa.

Ghana, Africa's second largest gold producer after South Africa produced 3,6 million ounces (about 102 000kg) in 2012. At peak, Zimbabwe produced 27 000kg in 1999.

Government intends to reorganise the gold sector and legalise the operations of gold panners.

Zimbabwe has over 20 000 gold panners whose output, if properly accounted for, would significantly increase the country's gold output. The Chamber of Mines of Zimbabwe has also said gold production could reach 50 tonnes in the next five years.

Some large gold miners are planning to spend on expansion programmes which will boost production. Freda Rebecca plans to raise annual gold output from 60 000 ounces to 100 000 ounces in the next two years, MD Mr Tonderayi Muganyi said.

Mr Muganyi however, did not disclose how much they need, but said that while about $5 million will suffice for such an increase, Freda Rebecca would require much less. This, he said, is because an established mine may require less in terms of capital.

GAT Investments got $10 million for its Bilboes Holdings, a gold-focused mining and exploration company. Some of the mines under Bilboes have since resumed operations.

RioZim Limited floated a tender, seeking bids for contract mining at its Cam and Motor gold mine in Kadoma. It said bidders should have capacity to mine 270 000 tonnes per month.

During four months to April, the total value of the minerals produced, excluding diamonds was $596,4 million. Platinum production fell to 4 000kg from 4 272kg a year ago.

The value of platinum mined during the period under review was $163,4 million, down from $196,1 million a year earlier. Palladium output was flat at 3 200kg and the value of the mineral slightly increased from $66,2 million in 2013 to $67,6 million.

About 5 400 tonnes of nickel valued at $56,5 million were produced up from 3 300 tonnes a year ago at a value of $45,2 million. Coal output increased to 2,1 million tonnes valued at $32,3 million from 1,3 million tonnes achieved in four months to may April 2013.

Chrome production significantly increased to 151 621 tonnes ($14,8 million) from 43 000 tonnes.
High Carbon Ferrochrome production more than doubled from 21 000 tonnes to 52 000 tonnes.
- The Herald

Tags: Gold,