Zimbabwe's largest platinum miner Zimplats has reported an increase in its underground mining production.

Underground operations saw the increase, with underground mining at the Ngezi platinum mine seeing an increase from 177,000 tonnes in the last quarter of 2005 to 196,000 tonnes for the first quarter of this year.

Opencast mining operations production fell to 303,000 tonnes from the 431,000 tonnes recorded for the previous quarter, due to the planned reduction in open cast tonnage. Zimplats added that heavy rains in February also caused difficult mining conditions.

The company also reported that its fourth mining fleet was on schedule to start production this month. This will bring mining operations to full capacity and boost production figures further over the coming year.

The company also made a brief comment on government proposals to take a 51 per cent share in all foreign owned mines.

"Positive discussions have been held with the government on this matter and management is confident that a mutually acceptable framework for empowerment and/or government participation in the company’s shareholding structure can be agreed upon," the company said in a statement.

There are fears that the measures could scare off foreign investment from a country already desperately lacking in foreign exchange reserves.

South African mining giant Implats currently holds the majority stake in the company.

Ÿ Adfero Ltd