Zimbabwe's gold production plunged by 64.5 percent in October compared to the same period last year, the Chamber of Mines said on Wednesday, underscoring the woes of the once-vital industry.

Gold output in October was 125 kilogrammes in October, down from 352 kilogrammes in the same month last year, the chamber said.

The production is a far cry from the country's peak in 1999, when Zimbabwe produced an average of 2259 kilos a month, the Chamber said.

The figure is likely to drop even further after Zimbabwe's largest gold mining firm stopped operations early this month at its five mines across the country, resulting in 5000 people losing jobs.

The Chamber said the Reserve Bank of Zimbabwe (RBZ) – the country's monopoly buyer – owes gold producers US$30-million in unpaid fees, some dating back to end of 2007.

The yellow metal has traditionally been one of Zimbabwe's main foreign currency earners, but the mining sector has been crippled in recent months by power cuts and shortages of foreign currency needed to maintain equipment.

The sector has also been hard hit by an exodus of experienced personnel.

Shortages of cyanide, drill steel and compressor spares have also hampered production.

The southern African nation, currently gripped by a post-election crisis, has been ravaged by the world's highest inflation, last estimated in July at 231 million percent, along with a high unemployment rate and food shortages.

AFP