Zimbabwe gold output plunges by 64.5% in October

New figures released today (November 19th) by the Chamber of Mines have shown that gold output in Zimbabwe continued to plummet considerably in October.

Production of the yellow metal was 125kg during the month, a figure which represents a 64.5 per cent drop from the 352kg recorded for the equivalent period last year.

The gold mining industry in the country is being crippled by a dispute between mines and the Reserve Bank of Zimbabwe, which owes producers around $30 million in unpaid fees, according to the Chamber.

The problem has escalated to such an extent that Metallon Gold, the country's largest producer, has halted operations at all five of its mines across the country, with 5,000 jobs being lost.

In addition, output has been compromised by power shortages and a lack of funding required to maintain equipment, while experienced workers have been at a premium and supplies of cyanide, drill steel and compressor spares have declined.

The latest figures show how far gold production has fallen in Zimababwe, considering its output stood at an average of 2,259kg per month at its peak in 1999.

However, with the situation showing no signs of being resolved, production looks set to suffer further, which will be positive news to anyone considering investing in gold.

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