Mangudya said Zimbabwe gold mining has been under-exploited over the years; not least corruption and mismanagement of the mining industry – amounting to some 600 tonnes below capacity.
He said gold production had its peak in 1999 with 27.1 tons per year only to plummet to 3.5 tons in 2008, amid the economic crisis the country has gone through under the tyrannical leadership of Robert Mugabe; who was eventually ousted in a bloodless coupe last November.
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Governor Mangudya is confident; with properly regulated investment Zimbabwe has the potential to overtake Tanzania, the East African country that produces some 50 tons per year…’we have the potential to reach 100 tons every year and that would generate revenue worth more than four billion dollars at the price of 40 thousand dollars a ton’.
The governor said Zimbabwe has assets of quality that need to be exploited to orientate the economy towards exports and increase the hard currency reserves that allow for a much needed economic transformation; for a country that once boasted as the breadbasket of Southern Africa.
Mangudya said the government of Zimbabwe established Corporation of Mining Development of Zimbabwe which regulates the mining sector spread across the country; and overseeing all mining and processing plants. These include Sabi and Jena, with capacity to treat 450 tons of gold/iron per day and that of Elvington, that used to produce 45 kilograms monthly.
Governor Mangudya said in the first seven months of 2018, production of gold in Zimbabwe rose 72 percent and reached 20.8 tons, compared to just 12.1 tons last year; thereby generating US$850 million in revenue.