The Zimbabwean metals industry continues to face uncertainty and falling production levels because of the ongoing foreign exchange problem, sources have revealed.

Zimbabwe University economist Albert Makoche has said that local producers of metals such as platinum are likely to be losing 50 per cent or more of their production by the end of this year:

'Mining is likely to hit rock bottom due to lack of foreign exchange', he said, blaming general economic downturn and sanctions on the widespread revulsion at the excesses of Robert Mugabe's regime.

Despite government promises to devalue the dollar and revue the exchange rate of Zimbabwe's dollar, Mr Makoche said the mining industry was in danger of losing its place as the country's major foreign currency earner.

Exports are essential for the companies to pay for operations: 'Base metal producers are being forced to continue producing below capacity because inflation has been constantly pushing up costs while the exchange rate was not viable.'

The two-year-old export support scheme - which takes 50 per cent of mineral exporters' earnings - has exacerbated the problem, which is already affecting production.