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Gold deliveries surge

In its monthly report for November, AfDB said that the role of small-scale players in the gold sector in Zimbabwe is becoming more pronounced in the mining industry.

There has been a noticeable increase in small-scale activity in gold production since the beginning of the third quarter, it said.
“The total gold deliveries from the small-scale players increased from 126,5kg in June 2011 to 388,1kg in October 2011,” it said.
“There was also a noticeable increase between September and October 2011, as gold deliveries by the small-scale players increased by 49% from 260,1kg in September.”

However, AfDB noted that the increase in deliveries in October occurred at a time when deliveries from the primary producers were shrinking compared to September.

“Gold deliveries from the primary producers fell by 11 percent in October to 770,2 kg,” it said.
Primary producers are facing constraints, notably power cuts and under capitalisation.

They are still to get money from the central bank for gold delivered three years ago.

The country’s gold producers are operating at 44% capacity at a time gold prices have been buoyant on the commodities markets.
Gold is contributing a significant part in export receipts and generated US$334,2 million in 2010. The receipts are projected to double to around US$627 million this year.

In 2013, gold is expected to generate US$823 million.

Production volume increased by 93,7% to 9 620 tonnes in 2010.

In 2011, production is projected to increase to 13 000 tonnes. Despite the firming world prices, the Chamber of Mines say the sector requires recapitalisation and estimates that it needs US$2,31 billion to recover and grow in the next five years.

With that huge capital injection, the chamber estimates that would quadruple to 50 000kg in 2016.

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