Thursday, 22nd June 2006 (2359 views)

The largest gold producer in Zimbabwe, Metallon Gold, is set to miss its 2006 output target.

The Herald newspaper reports that the gold company's chief executive, Collen Gura, said that electricity shortages and a worsening operational environment were key factors in Metallon's inability to meet its target of 170,000 ounces of gold this year.

A more realistic figure was around 140,000 ounces of gold, Mr Gura said.

The Zimbabwe Electricity Supply Authority is struggling to keep up with electricity demand due to its current inability to import power and improve its facilities.

Following the collapse of other industries, most notably the seizure of white-owned farms by President Robert Mugabe, mineral excavation and mining has become the leading earner of foreign currency for the African nation's ailing economy.

Gold mining accounts for over half of Zimbabwe's mineral exports and the mining industry earns more than 40 per cent of all foreign currency income for the country.

 

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