The Zimbabwean Chamber of Mines has outlined a strategy designed to revive the fortunes of the country's mining industry.

The platinum and gold sectors have been beset by an economic crisis many have blamed on the policies implemented by President Robert Mugabe.

According to Reuters, Chamber of Mines president Ian Saunders believes that the government must scrap its dual exchange rate system, devalue the local currency and introduce its black economic empowerment programme.

The current strength of the Zimbabwe dollar, which is trading at 5,776 to the US dollar, is eating into the profits of miners.

The Chamber of Mines believes a rate of 8,500 Zimbabwe dollars to the US dollar is needed to facilitate the recovery.

"We need to have a convergence of the exchange rate first, and the current rate is not sustainable," Saunders said.

"We will not register growth in mineral production this year unless these issues are urgently addressed and we might fail to realise the recovery we had in 2004."

Gold and platinum production are continuing to rise in the country according to the latest figures, but fears have been growing about the prospects for the industry among observers.

In November Zimbabwe's government abolished offshore accounts held by platinum producers in an effort to strengthen the state of the foreign currency market in the country, but the move caused jitters among many industry figures as the government sought to take a greater controlling interest in the market.

According to the central Reserve Bank of Zimbabwe platinum concentrate production for the first nine months of 2004 stood at 4,070 kg, compared to 3,858 kg the previous year.