Platinum mines in Zimbabwe are operating at near-full production despite the country's financial struggles, according to one industry official.

The country's mining sector has been badly impacted by political and economic turmoil in recent times, while electricity shortages also represent a major hurdle.

Following the agreement of a power-sharing deal between President Robert Mugabe and Prime Minister Morgan Tsvangirai, mining companies have seen tentative signs of recovery.

Indeed, Victor Gapare, President of the Chamber of Mines, revealed that platinum producers are making a particularly impressive fist of returning to normality, Reuters reports.

However, he also noted that the same problems persist in the sector, with gold mines running at 30 to 40 per cent capacity and nickel mines remaining closed.

"Mines have not been able to access both working capital and long-term capital to recapitalise," he told the news provider.

"There are no foreign lines of credit for the industry at the moment. With regards to electricity, ZESA [power utility] is struggling to supply the [mines]."

The world's two largest platinum producers - Anglo Platinum and Impala Platinum - both have operations in Zimababwe as the country has sizeable untapped reserves of the precious metal.

Source:

Capital, power woes threaten Zimbabwe mining recovery (23/03/10)

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