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Monday, October 15th, 2018 - Buy Gold - Bringing you trusted gold news and gold investing information since 2006

Gold Production in Zimbabwe up 35%

Gold output in Zimbabwe is expected to increase by as much as 35 percent in 2011, while costs, power shortages and funding remain serious problems, the country’s Chamber of Mines reports.

An official at the Zimbabwean Chamber of Mines on Friday said that although the gold output in the country could rise by as much as 35 per cent this year, the mining sector is still struggling with funding and power shortages, and growth is further stifled by high costs.

According to Victor Gapare, president of Zimbabwe’s Chamber of Mines, the gold sector would need $1 billion every year to ensure that production could be increased to 50 tonnes in the coming five years.

In 2008, the country experienced a plunge in gold production, to a record low of three tonnes – a result of hyperinflation and acute shortages of foreign currency and electricity.

The situation was remedied by the dumping of a worthless local currency in exchange for multiple foreign currencies, a move by a power-sharing government made up by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai, resulting in a stabilisation of the economy and a taming of the hyperinflation.

Most mines have since returned to production, with companies interested to make the most of the bullish outlook for gold – hitting record highs this year.

Last year the production of gold was at 9.6 tonnes.

During the annual meeting of the chamber on Friday, Gapare said “We expect the firm prices of gold to remain. With this positive outlook for gold, it is high time we put in place policies that will allow us to ride the crest of this positive trend.”

He added “The 2011 production is expected at between 12 to 15 tonnes, an increase of 35 percent. As our short to medium term target, we believe gold production should be at 20 tonnes a year.”

By 1000 GMT on Friday spot gold XAU= was at $1,526 an ounce.


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