Zimbabwe's gold output fell by more than a third in 2007 as mines suffered from galloping inflation and power cuts, data from the country's chamber of mines showed on Wednesday. The Chamber of Mines said gold output had declined from 11,000 kg in 2006 to 6,115 kg during the first 10 months of last year and was expected to top only 7,000 kg tonnes during the whole of 2007.
"The figures cover up to October 2007 but even if the figures for the last two months are consolidated, it will not be more than seven tonnes," a Chamber of Mines official said.
Gold deliveries have been falling since 2005 when output declined to 13,000 kg from 21,300 kg the previous year with the central bank saying the mineral was finding its way to the black market, where earnings are higher and subsequently smuggled to neighbouring countries. Gold is a key foreign currency earner for Zimbabwe's struggling economy and accounts for about 52 percent of total mineral production and a third of export earnings.
But the sector has been hit by mine closures in the last six years, as operating costs soared in a recession marked by the world's highest inflation rate officially pegged at 8,000 percent and shortages of fuel, foreign currency and electricity.
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