Zimbabwe's Mining Output Doubles in 2010
Source: Bloomberg, Brian Latham and Ainhoa Goyeneche (4/7/11)
"Platinum and gold production have multiplied as the nation emerges from economic recession, but foreign companies are on a deadline to show how they will dispose of 51% of their Zimbabwe operations."
The southern African nation boosted output from $672 million in 2009, economist John Robertson said in an e-mailed statement today, citing figures from the country's Chamber of Mines. Platinum production rose 26% to 8.6 metric tons in 2010, earning $409 million, while gold generated $380 million from 9.6 tons, compared with $157 million from 4.9 tons a year earlier, he said.
President Robert Mugabe's Zimbabwe African National Union-Patriotic Front and Prime Minister Morgan Tsvangirai's Movement for Democratic Change formed a coalition government in 2009, helping to end a political crisis and lift the economy out of recession. Platinum and gold production will probably reach 12.5 and 13 tons respectively this year, with total mining output expected to grow 44%, the nation's central bank said on Jan. 29.
The government wants local Zimbabweans to benefit more from the increase in output, particularly from mines. Foreign-owned miners like Zimplats, Rio Tinto and Anglo American were on March 28 given 45 days to show how they will dispose of 51% of their Zimbabwe operations.
Zimbabwe produced 154,336 tons of high carbon ferrochrome worth $135 million in 2010, more than double the 72,223 tons in 2009, Robertson said.