Gold output drops in Zimbabwe

Figures released on Wednesday (March 19th) by the Chamber of Mines have shown gold output to have fallen in Zimbabwe.

The news may benefit those investing in gold as it could lead to higher gold prices when supply no longer meets demand, The Herald reports.

Total output fell 58.9 per cent in February compared to the same month last year and was 14.8 per cent down on January's total.

Mining analysts blamed the fall in production on power cuts and having to import raw materials. This followed reports by the Reserve Bank of Zimbabwe in January that also blamed rising production costs and a lack of mining development programmes.

"It is a combination of several factors […] and no major investment has been made in the sector for quite some time," said a source from the local gold company.

Metallon Gold Zimbabwe forecasts that production may continue declining this year to levels below four tons.

Gold is currently one of Zimbabwe's main exports, along with tobacco, cotton and agricultural products, according to BBC News.

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