Zimbabwe Mining Industry : Are They Seeing The Credit Crunch?

THE Zimbabwe mining industry is likely to contract if the current political crisis is not resolved, a mining industry report claimed this week.

A report by companiesandmarkets.com claims that the Zimbabwean mining “industry is forecast to register an average annual contraction of 1.5% during 2008–2012,” if the political environment does not improve significantly.

The report, however, says the current global financial crisis is “continuing to play out” making it difficult to “carry out a comprehensive review of its mining sector reports”.

The company also says all is not doom and gloom for the Zimbabwean mining industry.

“The recent surge in metal prices — especially of gold and platinum — has been a boon for the mining industry of Zimbabwe.”

The report was critical of impending mining legislation which President Mugabe has indicated will come into force soon.

Calling the legislation “unfriendly to investors”, the report says “the impending legislation is not finding favour with the majority of players as it is perceived to be another blow to the already frail investment environment of the country.”

More Detail at Mining Plazza