Zimbabwean gold producers may suspend operations because a foreign-exchange shortage has left them with insufficient funds to cover production costs, the main industry lobby group said. Curbing output would deprive the country of a key source of export earnings as Finance Minister Mthuli Ncube tries to stabilize an economy wrecked by the misrule of former leader Robert Mugabe.
Source: Zimbabwe gold producers warn currency shortage threatens output – Mining Weekly
HARARE – Zimbabwean gold producers may suspend operations because a foreign-exchange shortage has left them with insufficient funds to cover production costs, the main industry lobby group said.
Curbing output would deprive the country of a key source of export earnings as Finance Minister Mthuli Ncube tries to stabilize an economy wrecked by the misrule of former leader Robert Mugabe.
“If this situation is not addressed the majority of (gold) mining houses, whose going concern have been undermined, may find it impossible to continue in production,” the committee said. It proposed allowing mineral producers to retain a larger share of the proceeds from metal sales.
Zimbabwe is projected to produce 30 metric tons of gold in 2018, up from 24.8 tons last year. The metal is Zimbabwe’s second-biggest export, after tobacco, according to World Trade Organization data.
COMMENTS
MUGABES MISRULE!!!!. He ruled as as a despot for years and the west took his gold and when things got bad you all reneged. WHAT HYPOCRITES . Now we have another despot let’s see what happens???