Zimbabwe mining to earn $2.5 billion this year

Zimbabwe’s mineral revenue is projected to reach $2.5 billion this year up from $2.3 billion last year, on higher production from gold and platinum miners, the Chamber of Mines has said.

Gold output is expected to reach a new record of 30 tonnes while Platinum production is seen rising to 15.5 tonnes this year from 14.2 tonnes in 2017 as producers ramp up production.

“The mining industry is hopeful that all short term viability matters that include the high operating costs, foreign exchange constraints, access to capital and general ease of doing business reforms will be resolved during the year,” Chamber of Mines economist Pardon Chitsuro told a business meeting today.

But the sector was in ‘dire need of capital’ to replace obsolete equipment, he said.

“In 2018, the mining industry requires around $777 million to optimise production, with $401 million needed for sustaining operations and $376 million for replacement and expansion capital,” he said.

Mining remains a critical source of foreign currency for the Zimbabwe contributing 59 percent of export earnings in 2017. – The Source

(116 VIEWS)