Story by Owen Mandovha, Business Reporter
FIRMING gold prices on the global market are brightening prospects of achieving this year’s economic growth target, with an ounce of the yellow metal having breached the US$3 000 mark for the first time in two years.
Experts contend the record-breaking prices provide incentives for gold producers to ramp up production and enjoy higher margins per ounce if operating costs remain unchanged, as investors seek a safe haven in the yellow metal.
Prospects to achieve the six percent growth target set this year by Treasury have brightened on the back of the expected rise in mining revenues which are likely to hit US7 billion according to the Ministry of Mines and Mining Development projections.
Government has set target to produce 40 tonnes of the yellow metal this year, up from the 36 tonnes delivered to Fidelity Gold Refiners last year.
Platinum Group Metals (PGMs) are also expected to recover on the global commodities market, a boon for local platinum producers.
