JOHANNESBURG - Zimbabwe's platinum producers maintained output and even
extended operations last year, defying political uncertainty in the country
following an inconclusive presidential election, metals refiner Johnson
Matthey (JM) said on Monday.
JM said supplies from Zimbabwe and other producers increased by 5 000 ounces
to reached 295 000 ounces last year, a boon for Zimbabwe which has
increasingly depended on mining for hard cash earnings but saw gold
production tumble over the same period.
"Zimbabwean platinum production increased despite a very difficult political
and operating environment," JM said in its Platinum 2009 report.
Zimbabwe witnessed some of its worst ever political violence during the run
up to a second round presidential ballot called up last June after President
Robert Mugabe lost a presidential election the previous March to then
opposition leader Morgan Tsvangirai who however failed to achieve the margin
required to take power and avoid a second round run-off vote.
Tsvangirai pulled out of the June ballot citing state-sponsored attacks
against his supporters and in the process, leaving Mugabe to win as sole
candidate.
But the election was universally condemned, with African countries that had
refrained from criticising Mugabe in the past also denouncing the
violence-marred election - a situation that forced the Zimbabwean leader to
open negotiations to share power with Tsvangirai and Arthur Mutambara, who
heads a smaller opposition party.
The unity government has promised to revive the economy but its success
hinges on its ability to raise financial support from rich Western countries
that have however said they will not immediately help until they are
convinced Mugabe is committed to genuinely share power with his former
opposition foes.
There is huge potential for mining to grow further and provide desperately
needed revenue for the unity government.
But a controversial law limiting foreign ownership of mines to 49 percent
enacted by Mugabe several months before agreeing to share power is acting as
a huge disincentive to foreign firms with financial resource to develop
Zimbabwe's platinum resources - the second largest in the world after South
Africa.
In addition to platinum, Zimbabwe also has huge deposits of gold, diamonds,
nickel and coal.
