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.