Caledonia Mining Corporation (TSE:CAL)

[NYBob]

ZIMBABWE's gold output will put up a 1150 percent growth in the next five years if the sector attracts at least US$3,5 billion in fresh capital injections req-uired to finance capital expenditure, latest mining industry projections indicated last week.

The industry produced about four tonnes of gold last year.

Mines require between US$3,5 billion and US$5 billion to bankroll the resuscitation of closed mines and finance expansion programmes, according to the Chamber of Mines of Zimbabwe (CMZ).

Gold mines have said they require at least US$1 billion in fresh investment while at least US$1,2 billion would be required to fund platinum mining.

US$250 million would be required to beef up operations in ferro-chrome production, US$110 million to bankroll nickel extraction and US$280 million to finance the recovery of coal mines.

But given the liquidity crisis stalking the country's embattled financial markets, Zimbabwean miners have a huge task cut out for them.

CMZ president, Victor Gapare told a conference organised by ZANU-PF to iron out acute differences between the political party and business last week that while growth in gold output could continue with internally generated funds, forecasts had revealed output could surge to 50 tonnes per year by 2015 if the US$1 billion was injected into the industry.

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http://www.businessweek.com/news/2011-01-12/gold-imports-by-india-likely-reached-record-wgc-says.html