Zimbabwe's gold mining sector has shrunk by almost 50% over the past three years due to the government's failure to set competitive market rates, says a top Chamber of Mines official.

Chamber of Mines president, Jack Murehwa, said gold mining has shrunk from 24 to 11 tonnes a year due to the lack of a competitive price as the government-set price was below the current market rates.

The Chamber of Mines president said this during an interview on the sidelines of the official opening of Mine Entra at the Zimbabwe International Trade Fair show grounds in Bulawayo.

"The mining industry is not showing any signs of improvement and has, in fact, shrunk over the past three years with gold mining, for example, going down from 24 tonnes to 11 tonnes a year.

"What has led to this situation is a scenario where one who takes his gold to the Reserve Bank of Zimbabwe gets far less than what he would have gotten on the parallel market," Murehwa said.

Murehwa said for the industry to be revived, the right environment and the right price had to be put in place.

Deputy Mines and Mining Development Minister, Tinos Rusere, who was also present at the official launch of the Mine Entra, confirmed that the gold mining sector had almost collapsed.

Rusere said the government could not match the competitive gold prices offered on the parallel market.

"Although it has shrunk, the government cannot be seen trying to match the prices offered by 'briefcase guys' offering better packages," Rusere said.

Expressing optimism over the future performance of the gold mining industry, he said the sector was expected to experience better fortunes if the government reviewed gold prices.