gold1.jpgThe local mining industry has welcomed the current rally in the price of gold and other metals on the international market as a positive development for the mining sector which is projected to grow by 60% by the end of 2011.

Gold price continues to surge, reaching a high of US$1 500 per ounce last week as investors resort to the commodity, which is currently viewed as a safe investment haven in face of a weaker US dollar as well as economic challenges still affecting several developed countries.

Projections are that gold as well as other metals such as silver and platinum will in the near future maintain the positive momentum, a development which Zimbabwe Miners Federation National Chairman, Mr Edzayi Kufandarerwa believes is vital towards the realisation of increased revenue from mineral exports.

“This is a positive development that will benefit exporters of these metals, which include Zimbabwe,” Mr Kufandarerwa said.

Latest figures from The Chamber of Mines indicates that gold output, which has over the years been on a decline is set to surge to 13 tonnes by year end from low levels of around 3 100 kilogrammes in 2008.

At least US$1 billion is required to for the resuscitation of the local gold industry according to the Chamber of Mines.

The country’s mining industry, which is expected to surpass the current contribution to GDP of around 7% at the back of opening up of new mines and the recapitalisation of old mines, is however still faced with a number of challenges including inconsistent power and water supply.