Gold News

Zimbabwe gold production plunges

Gold production in Zimbabwe plummeted by 37 per cent last year, it has been revealed.

In news that may interest those investing in gold, about seven tons of gold bullion was produced by the nation in 2007, compared with 11 tons in 2006, the AFP reports.

The president of the Chamber of Mines, which produced the data, told the agency that there were several reasons for the decline, news of which comes amid a mining crisis in South Africa brought on by electricity shortages.

"The major problem we had was the availability of electricity and the failure by the central bank to pay producers on time," Jack Murehwa commented.

A shortage of foreign currency and a lack of cyanide, drill steel and compressor spares were also blamed for the drop in production.

Globally, gold mining production is on a downward trend, helping to push up gold prices further. According to GFMS, production fell by one per cent last year, with some countries seeing double-digit decreases.

And earlier this week, Australian firm Sino Gold warned that it expected to see February gold production at one of its most important mines fall short of earlier forecasts.

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