The gold output of Zimbabwe is expected to fall by almost a quarter over the course of 2007, China View reports.

The country's Herald newspaper reported that output of the precious metal would fall by 23 per cent to around 8,7000 kilograms - down from 11,354 kilograms last year.

According to Zimbabwe's Chamber of Mines, producers in the country are continuing to encounter operating problems, including the non-payment of the foreign currency component by the country's Reserve Bank and Central Bank.

The problem was also outlined by the Chamber of Mines' president, Jack Murehwa, who told Mineweb that gold miners in the country are owed more than $20 million.

They are also failing to secure inputs for processing gold ore.

"The reason being that as mines continue to fail to secure inputs required in the processing of gold ore, mainly cyanide, they may be forced to close their processing plans and therefore fail to produce any gold for sale," said Murehwa.

Falling production in Zimbabwe is helping to boost the price of gold.