Zimbabwe gold mines’ spectacular plunge

At its highest point,
Zimbabwe produced more
than 2 400 kg of gold
monthly but this fell to an
all-time low of 125 kg in
October as the economic
crisis forced more mine
closures.
The country’s mining
chamber says gold mining
companies, which receive
only 40% of their earnings
in foreign currency, are
owed more than
US$30 million (R310 m)
by the Reserve Bank of
Zimbabwe (RBZ). Gold
contributed a third of
Zimbabwe’s export earnings
after the collapse of
commercial agriculture in
the country.
Metallon Gold, which
produced more than half
of Zimbabwe’s gold, is
owed US$20 million by the
RBZ and has closed its five
mines, jeopordising about
3 500 jobs.
In addition to the
monies owed by the RBZ,
Zimbabwean mining
companies are also plagued
by frequent power cuts,
the departure of skilled
labour and foreign currency
shortages.