Thursday, 24th May 2007 (2465 views)

Zimbabwe's annual gold output has plummeted to eight tonnes, the biggest fall since 1916, Zimbabwe's chamber of mines (ZCM) reported this week.

In the 12 months to March 2007, gold production was only half of 16 tonnes produced in the 2006 calendar year. Just eight years ago in 1999, Zimbabwe saw a peak in gold output of 27 tonnes.

However, the industry has been in freefall recently, prompting the government to increase the presence of police officers in order to clamp down on suspected smuggling. In January and February, Zimbabwe was only able to produce 1.4 tonnes of gold.

Jack Murehwa, chairman of the ZCM, said that Zimbabwe was the only country not to reap the rewards of high global mineral prices.

"Our industry continues to experience declines in volumes despite the very buoyant mineral prices which have prevailed for the past 18 months," he said.

Murehwa complained about "policy inconsistencies" in the economy that had caused hyperinflation, shortages of gasoline, power outages and the funds to invest in spare parts for failing machinery.

He said despite the high world prices, international firms had avoided investing in Zimbabwe's mining industry. According to the Reserve Bank of Zimbabwe, foreign investment in the economy has declined from $444.3 million in 1998 to $50 million (£25.2 million) today.

 

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