Gold production in Zimbabwe jumped 35% in 2009 to 4.2 tonnes the country's chamber of mines said yesterday.  This may seem a big increase but it is still only a fraction of the country's peak output of around 30 tonnes a year.  Indeed Zimbabwe produced as much as 27 tonnes of gold as recently as 1999 and has the geological potential perhaps to exceed its old peaks given ideal domestic political and economic circumstances, which still seem as far off as ever.

According to AFP, the chamber's chief economist David Matyanga called it a remarkable recovery not just for the gold sector, for the mining sector in general.

Once the third largest gold producer in Africa, the country has been beset with political and economic problems, not the least of which was crippling hyperinflation, and has largely failed to cash in on the record prices recently seen for gold.

According to comments by managers at foreign mines quoted by AFP "The operating environment last year greatly improved when compared to the previous year."

One of the major changes was the deregulation of the gold mining sector in March last year which allows gold producers within the country to sell to whomever they want which will enable them to receive better prices.

If the operating environment in the country continues to improve it is likely that companies such as Central African Gold will look to restart production at mines in the country. And others such as Mwana Africa and African Consolidated Resources could well look to increase exploration activities in the country.

Mineweb