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Sunday, December 4, 2022
HomeNewsGold Accounts for 40pc of Zim’s Mineral Value

Gold Accounts for 40pc of Zim’s Mineral Value

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The Chamber of Mines of Zimbabwe has revealed that profitability in the gold industry improved in 2017 to around US$254 per ounce as compared to US$235 recorded in 2016.

According to the 2017 State of the Mining Industry survey report, about 70% of gold producers recorded profits in 2017 which is projected to continue into 2018.

“ About 70% of gold producers recorded profits in 2017, and in 2018, also 70% are projecting profits. All respondents indicated that the profits are being ploughed back into the businesses as a source of capital.

“The mining sector has remained less diversified, with activities in the industry in Zimbabwe predominantly concentrated on six key mineral categories gold, PGMs, diamond, nickel, chrome and coal accounting for 97% of the value of minerals generated in 2017,” reads the report.

The report listed gold as the dominant mineral accounting for 40% of mineral value in 2017.

“Gold has remained the dominant mineral accounting for 40% of mineral value in 2017 although its contribution declined from 47% in 2016, while the share of chrome and diamond in total mineral value increased over the comparable periods.

“Survey findings show that the mining industry payments to Government and  related institutions averaged 13.62%, of mineral revenue in 2017, compared to 13.57% in 2016.

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“40% of respondents revealed that they increased their contributions proportion of government payments to total turnover in 2017 compared to 2016, 40% remained at the same level, while 20% recorded declines for the comparable periods,” says the report.

The report further noted that for the first time, small-scale producers’ contribution to total gold output was 47% up from 40% in 2016.

“For the first time in more than a decade, the country’s small-scale producers’ contribution to total gold output at 47% up from 40% in 2016, surpassed that of large scale1 gold producers, which accounted for 46%, down from 55% in 2016.

“Profitability in the gold industry improved in 2017 to around US$254/ ounce, from US$235/ ounce in 2016. About 70% of gold producers recorded profits in 2017, and in 2018, also 70% are projecting profits.

“All respondents indicated that the profits are being ploughed back into the businesses as a source of capital,”reads the report.

Survey findings show that of the gold revenues generated in 2016, labor consumed for 32%, government-15% while suppliers chewed 43%, amounting for 90% of total revenue.

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