Harare — GOLD, diamond and coal producer, RioZim registered growth in gold output during the first half of the year, shrugging off the harsh economic environment that dogged the entire economy. RioZim's production update to shareholders issued this week indicated that the group's gold output increased by 31 percent to 10 401 ounces compared to 7 931 produced last year. However, diamond production at Murowa and nickel production at Empress Nikel Refinery remained low.essed price compared to 135 000 carats in the same period the prior year, translating to a 35 percent decrease. Diamond sales have been hit by hard times brought on by the global financial crisis significantly reducing output levels, costs, and capital expenditure. Depressed diamond production resulted in Murowa contributing an operating loss of US$1,4 million to the group's results. Nickel production was low due to force majeure declared by BCL and erratic supply of both matte and power resulting in the production of 3 769 tonnes of nickel and copper compared to 3 588 tonnes last year. Force majeure is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war or strike action preventing one or both parties from fulfilling their obligations under the contract. The group said nickel prices were significantly lower compared to last year whilst gold output was depressed in the first half of the quarter until the benefits of the changes to gold marketing resulted in a substantial increase in output in the second quarter.

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