Business Correspondent
Zimbabwe’s gold production increased by 23.9% in the second quarter of 2024 compared to the first quarter, but still lags behind last year’s figures, according to the Zimbabwe National Statistics Agency (ZIMSTAT).
“The output index for gold was 118.2, compared to 95.3 recorded in the first quarter, reflecting a quarter-on-quarter percentage increase in production of 23.9%,” stated the ZIMSTAT report.
However, the year-on-year comparison shows a decrease in the index of 3.9% from 123.0 recorded in the second quarter of 2023.
Zimbabwe’s mining sector is highly diversified, with nearly 40 different minerals, including gold, platinum, coal, nickel, chrome, diamonds, black granite, copper, asbestos, and silver. The sector generated US$5.1 billion in 2021 and US$5.6 billion in 2022.
“The mining sector remains a crucial component of Zimbabwe’s economy, contributing significantly to the country’s foreign exchange earnings,” said Tafadzwa Chimhenga, Economist at the Zimbabwe Economic Society.
Other key minerals showed mixed results:
- Platinum output decreased by 6.84% year-on-year.
- Diamond production dropped by 2.2% year-on-year.
- Coal output declined by 67.8% year-on-year.
- Copper production decreased by 1.72% year-on-year.
- Lithium production skyrocketed by 1,010.4% year-on-year.
- Granite production increased by 319.6% year-on-year.
- Nickel output decreased by 12.8% year-on-year.
“The Index of Mineral Production for the second quarter 2024 stood at 150.6, reflecting a year-on-year percentage increase of 3.7,” said the report.
Experts attribute the decline in gold production to various factors, including:
- Power outages
- Equipment shortages
- High operating costs
- Gold sold in the Black market
“To address the challenges facing the mining sector, the government needs to prioritize investment in infrastructure, provide support for small-scale miners, and streamline regulatory frameworks,” added Chimhenga.
Zim GBC News©2024