Gold companies restart mining in Zimbabwe

Gold producers are re-starting shut mines in Zimbabwe after new rules allowed them to sell gold directly on world markets, and keep the proceeds.

- On Feb. 2, Zimbabwe's central bank announced it would allow gold producers to sell their own bullion, after output slumped in 2008 by more than 50 percent.

- Gold contributes one-third to Zimbabwe's export earnings following the collapse of commercial agriculture after President Robert Mugabe's seizure of white-owned farms to resettle landless blacks.

- At its peak, the country produced 2,400 kg of gold per month. Last year production stood at a record low of 3,072 kg from 6,798 kg in 2007.

- About half of Zimbabwe's mining firms are foreign owned.

- Zimbabwe's largest gold miner Metallon Gold is negotiating a $10 million loan from local and foreign banks to restart operations at its closed mines next month.

- London-listed Mwana Africa Plc aims to reopen a Zimbabwe gold mine within six months and is also weighing restarting its Bindura nickel operations.

- Caledonia Mining Corp (CAL.TO: Quote, Profile, Research, Stock Buzz) plans to resume mining at the Blanket gold mine in Zimbabwe.

- Other than gold, Zimbabwe has the second largest platinum reserves in the world after South Africa, and Impala Platinum -- the mining firm with the biggest operations in Zimbabwe -- is expanding its output in Zimbabwe to 260,000 ounces of platinum by 2010 from around 160,000 oz. The company expects output of 1.7 million oz this year.

- In the long term, Implats would like to grow production to 1 million oz a year in Zimbabwe.

- Anglo Platinum (AMSJ.J: Quote, Profile, Research, Stock Buzz), the world's biggest platinum producer, has said its Unki project in Zimbabwe will produce some 150,000 oz a year when fully operational. Angloplat expects to produce 2.4 million oz this year.

- Rio Tinto  and Aquarius Platinum also own mines in Zimbabwe. (Reuters)

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