The Renco gold mine in Zimbabwe has been forced to reopen after being told by Robert Mugabe's government that it faces seizure if it remains closed.
Several sources from the mine, owned by RioZim, have told Mineweb that although the operation has restarted, production has declined sharply.
The mine closed earlier this year due to difficulties in employees receiving payment, but the management reconsidered the decision amid government threats.
Renco produced 277 kilograms of gold in the second half of 2007, a decline from 372 kilograms the previous year. RioZim has also ceased exploration in Zimbabwe's midlands region.
This could prove to be supportive for long-term gold prices, which may be of interest to those looking to make a gold investment.
Earlier this month, it emerged that recent spates of anti-immigrant violence in South Africa are having negative affects on the gold mining industry, causing international investors to drop out and output levels to fall.
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