The value of minerals produced in Zim-babwe between January and April declined by 8.5%, as miners struggled with high production costs, a lack of capital and the effects of depressed global metal prices.
According to the Chamber of Mines, the country’s mining sector earned $596.4-million in revenue during the first four months of this year, down from $652-million for the the corresponding period last year. The highest pro-portion came from the gold sector, despite a slump in production from 6 t for the first half of last year to 5.5 t for the corresponding period this year.
The gold sector’s revenue amounted to $255-million, while the platinum sector, which reported a decline in production from 4 272 kg in the first four months of 2013 to 4 000 kg for January to April 2014, earned $163.4-million, down from $196-million for the corresponding period last year.
The chamber says palladium production remained flat at 3 200 kg but recorded a marginal value increase from $66.2 million to $67.6-million.
Coal and nickel are the only mineral sectors which reported significant production and value growth. Coal production almost doubled – from 1.3-million tons during the first four months of last year to 2.1-million tons during the corresponding period this year – and earned the country $32.3-million in revenue. Nickel production increased from 3. 3 t to 5.4 t.
Chrome registered the biggest production increase – from 43 000 t to 151 621 t – and earned the country $14.8-million. High-carbon ferrochrome production more than doubled – from 21 000 t to 52 000 t.
However, confidence in the recovery of the mining sector was once again dented last week, as platinum producers warned that the 15% levy imposed on raw platinum exports by government in January might lead to a collapse of the vital and strategic sector.
Platinum Producers Association of Zimbabwe chairperson Herbert Mashanyare says the levy is an added burden to producers, who are already struggling to pay other punitive taxes, including a 10% royalty and a 0.8755% production levy, which goes to the Minerals Marketing Corporation of Zimbabwe (MMCZ).
He said the impact of the export levy is evident in the recent financial results of Impala Platinum, which is the leading producer in the country.
“If you take the 0.875% MMCZ levy and the 10% royalty and add this new 15% export levy . . . you have no industry,” Mashanyare says.