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of funds for recapitalisation, among other challenges, an official said last week.
According to Chamber of Mines president Mr Victor Gapare, major minerals recorded negative growth.
“The level of production for the first two months is lower than the average production for the last quarter of 2010,” he said.
“Comparison of production levels for the first two months compared to the average for the last quarter of 2010 shows negative growth for gold -18,89 percent, high-carbon ferrochrome -17,59 percent, platinum -2,03 percent and low growth for nickel 3,82 percent,” said Mr Gapare.
Volumes of five major minerals that include platinum, copper and gold produced in the last quarter of 2010 realised US$203,6 million while the same, produced in the first two months of the year, brought in US$194,6million.
The mining industry is expected to grow by 44 percent this year.
Mr Gapare said the growth rate was premised on new capital in the sector which is in dire need of refurbishment after a decade of low investment owing to sanctions imposed by the European Union.
“Most of the companies had forecast some growth on the basis of new capital coming in.”
“If no new capital comes in, they will have to rely on cash flows from current operations or debt which is becoming increasingly difficult to secure. This will mean slower recapitalisation and therefore slower growth,” said Mr Gapare.
Gold production, which stood at 2 000kg in the last two months of 2010, was between January and February this year at 1 600kg.
Mr Gapare, however, said production could recover during the rest of the year provided issues that include availability of funds and indigenisation are resolved.
“The market requires confidence in the future of the industry. Security of investment and tenure is a message that must consistently be put through so that both existing and new investors can confidently put resources into the Zimbabwe mining industry to improve output,” he said. – New Ziana.