Zim's mining industry set to contract this year

Zimbabwe’s mining industry is set to shrink for the first time in five years because of plummeting metal prices, high costs and a lack of capital, the country’s Chamber of Mines said in a statement recently. The industry may contract by 2% this year, the Harare-based chamber said. “The sector continues to operate below capacity amidst a host of challenges, not restricted to but including depressed metal prices, lower capital and foreign direct investment inflows, high cost structures, sub-optimal royalties and shortages of power,” said a chamber spokesperson Zimbabwe, which has deposits of gold, coal and iron ore, has the world’s biggest platinum and chrome reserves after South Africa. Mining is the biggest source of foreign exchange, with platinum group metals and gold leading tobacco as the nation’s largest exports. CAPTION Iron ore at the Mimosa Platinum Mine … Zimbabwe has the second highest platinum reserves in the world.