Weak prices threaten Zimbabwe’s mining industry – Chamber

Weak prices threaten Zimbabwe’s mining industry – Chamber

HARARE, January 26 (The Source) – Zimbabwe’s mining industry is facing viability challenges on the back of rising production costs at a time commodity prices remain depressed, an official has said.

Little is expected from the sector, which has recorded negative growth for the past two years; -3.4 percent in 2014 and -2.5 percent in 2015.

Chamber of Mines chief executive Isaac Kwesu said weak prices remained the biggest hindrance to growth of the sector.

“Our industry is going through difficult times specifically against the back drop of depressed prices. The majority of mining houses are struggling to break even,” he told a press conference on Tuesday.

“Viability may have been compromised as the cost of production has not been coming down. Instead they (costs) have been going up.”

Kwesu said prospects for the industry remained depressed for 2016 and into 2017. The Chamber will announce the results of a survey on the state of the sector on Thursday, he added.

 

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