The fallout from the disputed elections in Zimbabwe could have hurt production in the country's mining industry, experts claim.

According to Johnson Matthey, the problems surrounding the disputed presidential election could increase platinum prices and damage production.

It also said the impact of the South African power crisis could have an effect on the price of the precious metal.

Platinum production in Zimbabwe increased to 171,000 oz last year with palladium output and rhodium production holding at 134,000 oz and 14,000 oz in 2007.

According to reports from TalkZimbabwe, Anglo Platinum and Rio Tinto have both stated an interest in mining in Zimbabwe in the future even under the threat of naturalisation laws that hang over the industry.

But a report from Johnson Matthey said that this view could be hurt by the presidential race.

"Political uncertainty in Zimbabwe could damage output," it said.



Source:

Run-off election could hurt mining, 25/05/08
http://www.talkzimbabwe.com/news/117/ARTICLE/2520/2008-05-25.html