Zimbabwe could be capable of achieving annual platinum production of one million ounces in the next ten to 15 years, it was claimed yesterday (5th August).

Victor Gapare, Chairman of the Zimbabwe Chamber of Mines, revealed that the country is currently producing about 170,000 oz of the precious metal every year.

However, he explained that the growth potential in Zimbabwe - which has the world's second-largest platinum reserves - could see that figure increase sixfold in the future.

"If you look at the development of the two operations, you can understand what a good fiscal arrangement can do to benefit a country," he said at the Omega Mining in American conference in Johannesburg, according to Mining Weekly.

"When you get to Zimplats or Mimosa, you think you're in a different country, because they are able to keep their money, they are able to invest money and they are reaping the benefits."

Mr. Gapare added that the major obstacle to development is the lack of electricity supplies, which are currently only providing about 60 per cent of miners' requirements.

According to an unreferenced article by the Herald, state-owned power utility Zesa Holdings is seeking a $900 million loan in order to improve the service it provides.

Also speaking at the conference was Zimbabwe Mining Minister Obert Mpofu, who revealed that companies will be urged to capitalise on the country's mineral deposits.

He said that the government intends to quickly push through tough new laws that adopt a 'use it or lose it' approach to exploiting the potential on offer for mining firms.

It emerged recently that another mining bill - intended to give a 51 per cent stake in every mine to black Zimbabweans and the government - failed to develop into a law.

Sources:

Zimbabwe Consults Mining Industry on Changes to Laws (Update1) (05/08/09)

Zimbabwe heading for million ounces of platinum a year - Chamber (05/08/09)

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