The production of platinum in Zimbabwe has risen by eight per cent in the first five months of the year, according to new statistics.

Figures cited by the Financial Gazette show that production of the precious metal rose to 1,820kg for the first five months of the year, a marked improvement on the 1,693 kg for the same period in 2003.

Statistics from the Chamber of Mines suggested that the country would earn a total of Zim $363 billion from the platinum produced so far, a huge increase on the previous year's figure of Zim $23 billion.

Nevertheless, ongoing 'operational constraints' were said to have hampered output on a monthly basis, with production falling since January.

A total of 400kg of platinum was produced in January alone, while May yielded just 290kg - a drop of 27.5 per cent.

Earlier this year the main platinum firm in the country - Zimbabwe Platinum Mines - said it had set itself a series of high pgm production targets for the coming years, in anticipation of growth in the industry.

A company official told Platts that the firm had its sights set on improved growth, with production of platinum in 2004 tipped to reach 165,000oz.

However, opinion on the role the government plays in the Zimbabwean platinum industry is mixed, with many analysts critical of the secrecy surrounding state actions and the devastating effects of the current economic climate.

In 2003 Zimbabwe's platinum group metals mining sector, already subject to an unfavourable exchange rate, was hit by cuts in production caused by a national fuel shortage.