ZIMBABWE is set to surpass its annual gold output forecast as the Chamber of Mines data reveal that from January to June the country produced 4 023kg of gold.
The Chamber of Mines has projected that this year’s gold production would increase by 43 percent to between 7 000kg and 8 000kg compared to the previous year.
According to data released by the Chamber of Mines last Friday, during the first six months of this year, the country made US$148 million from the sale of gold, falling short by US$9 million of the total amount realised the whole of 2009.
Last year, the country’s total gold output was 4 965kg with a mine value of US$157 million, up 39 percent from the previous year’s figures of 3 579kg.
The Chamber of Mines said the firming of gold prices above the US$1 200 per ounce mark and the introduction of the multiple currencies led to the positive performance of the gold industry during the first six months of the year.
On a monthly basis, June made the highest contributions with 767kg of gold valued at US$30 million being produced followed by March when the country’s gold output was at 761kg with a mine value of US$27 million.
Finance Minister Tendai Biti initially projected that the mining sector would grow by 40 percent this year before reviewing the projection downwards to 31 percent.
The country’s gold mines are operating at about 35 percent and the Chamber of Mines has targeted producing 20 000kg a year in the short to medium term.
Last year, the country’s mining companies made close to US$1 billion dollars from mineral sales excluding vermiculite while in the first half of the year the mining sector made US$622 million with platinum contributing US$202 million.
The increase in platinum’s contribution has been largely attributed to an increase in its prices from US$926 per ounce at the beginning of 2009 to around US$1 530 in June 2010.
However, despite this positive performance, the mining sector’s contribution to the fiscus has been minimal with Minister Biti threatening to adopt a “business unusual” approach in an attempt to leverage mineral resources in support of the country’s development programmes.
In 2009, the mining sector had a turnover of close to US$1 billion and it contributed US$44,8 million in corporate tax, Value Added Tax, Pay As You Earn and royalties to the fiscus.

Alois Xaba