Zimbabwe gold output surges in Q1

Zimbabwe's gold production rose to five tonnes in the first quarter of 2016 from four tonnes last year due to improved availability of power, the Chamber of Mines said on Tuesday.

Chief executive Isaac Kwesu told a press conference that there was an increase in production of other key minerals such as platinum, copper and palladium during the period although earnings from all minerals dropped by 3.5 percent to 420 million U.S. dollars due to low mineral prices on the international market.

Gold, the major foreign currency earner in mining, recorded the biggest growth in earnings of 17 percent followed by platinum with six percent, Kwesu said.

He said most mines were operating at between 60 and 85 percent of their capacity and the sector continued to be affected by lack of affordable capital and power outages, among other challenges.

"The industry recorded a robust performance in the first quarter compared to the same period in 2015, with the majority of minerals recording a stellar output growth," Kwesu said.

Zimbabwe is targeting to up gold production to 24 tonnes this year from 18.6 tonnes produced last year worth nearly 700 million dollars.

Zimbabwe, which faces a significant power deficit, has experienced an improved supply of power since January this year due to increased imports from the region and low power consumption by an underperforming manufacturing sector. Endit