Zimbabwe mining growth jumps 35%

Published: 25 September 2013

THE mining sector has grown by an astonishing 35 percent in the period 2009 to 2011 with its contribution to Gross Domestic Product rising from 4 percent to 16 percent, industry data shows.

According to the Chamber of Mines the sector has overtaken agriculture as the mainstay of the economy and now accounts for more than 50 percent of foreign exchange inflows into the country.

Chamber of Mines president Mr Alex Mhembere told the mining and infrastructure indaba yesterday there was need to resuscitate closed mines and open new one to maintain the momentum there.

"The mining sector has to date been the most dynamic sector of the Zimbabwean economy, leading the 2009-2011 rebound with average annualized growth (rate) of 35 percent," he said.

The growth momentum is expected to sustain at an average of 19,2 percent between the period 2012 to 2015, but CoMZ said new deposits and mines should be discovered and opened.

The chamber said a good number of existing mines across the country that remain on care and maintenance or are closed due to capital and liquidity challenges should be resuscitated. Even President Mugabe, as evidenced by his many recent statements, agrees mining will spur economic growth going forward despite drawbacks of low international commodity prices.

According to Mr Mhembere most of the country's major minerals are this year expected to register significant growth excerpt Chrome, which is anticipated to record a decline in production.

Gold production is expected to increase from 14,7 000kg to 17 00kg, Platinum 10,5 000kg to 12,5 000kg, coal 1,7 000t to 200000t, palladium 8 000kg to 10 000kg, diamonds 12 000 000t to 16,9 000t while nickel output is projected to to 10 000t from 7,899t in the 2012 period.
- herald

Tags: Mining,