Online Reporter
Tapiwanashe Mangwiro
Senior Business Reporter
Zimbabwe’s production retreated in the first quarter after furnace maintenance disruptions weighed on production, even as global platinum markets remained on course for a fourth consecutive annual supply deficit.
The latest platinum quarterly report from the World Platinum Investment Council (WPIC) shows Zimbabwe produced 84 000 ounces of platinum in the first quarter, down 26 percent from the same period last year and marking the country’s lowest quarterly output in a decade.
The decline was largely attributed to operational challenges at Zimplats, Zimbabwe’s largest platinum producer, which weighed down production for the country’s second-biggest mining export.
“Zimbabwean output declined sharply, falling 26 percent year-on-year to 84 kilo-ounces (koz), a ten-year low, primarily due to reduced production at Zimplats. Furnace maintenance led to constrained output, with operations only restarting in mid-March.”
The council noted that approximately 29 000 ounces of semi-finished inventory accumulated during the maintenance shutdown and are expected to be processed during the second quarter.
Despite the weak start, Zimbabwe remains one of the world’s most important platinum-producing nations. The WPIC forecasts annual output of 508 000 ounces in 2026, only slightly below the 516 000 ounces produced in 2025.
“In Zimbabwe, platinum mine supply is expected to remain broadly stable year-on-year at 508 koz, reflecting steady output across operations,” the report said.
The stability outlook comes as platinum prices continue to trade at historically elevated levels following a dramatic rally during 2025.
Globally, the platinum market recorded a surplus of 268 000 ounces in the first quarter after six consecutive quarters of deficits. However, the WPIC expects this to be temporary.
The organisation forecasts a full-year deficit of 297 000 ounces in 2026, extending a run of supply shortages that began in 2023.
“Platinum markets are projected to be undersupplied in 2026, recording a fourth consecutive annual deficit,” the council said.
The projected deficit comes despite total global supply increasing by 2 percent this year to 7,38 million ounces.
Demand is expected to soften by 9 percent to 7,67 million ounces, largely due to lower investment demand after last year’s strong inflows into exchange-traded funds and exchange inventories.
A key feature of the global market remains the inability of mining companies to significantly increase production despite higher prices.
The WPIC noted that mine supply is expected to remain virtually unchanged this year at 5,55 million ounces, highlighting structural constraints across the industry.
At the same time, above-ground platinum stocks continue to decline. Global inventories are forecast to fall to 1,75 million ounces by year-end, equivalent to less than three months of demand.
The council believes the tight physical market is helping support platinum prices despite economic uncertainty and geopolitical tensions linked to the Middle East conflict.
Industrial demand is emerging as a major growth driver. Platinum usage is increasing in artificial intelligence-related infrastructure, semiconductors, fibre optics, data storage systems, hydrogen technologies and advanced glass manufacturing.
Demand from the electrical sector alone is forecast to rise by 20 percent this year, while glass-related demand is expected to surge by 83 percent.
Mining engineer Mr Takudzwa Muzangwa said Zimbabwe stood to benefit from these long-term structural trends provided producers maintain operational stability and continue investing in processing capacity.
“The short-term production decline should not overshadow the broader opportunity facing Zimbabwe’s platinum sector,” Eng Muzangwa said.
“Global inventories are tightening, supply growth remains constrained and platinum is finding new applications in AI infrastructure, hydrogen energy systems and industrial technologies. These are sectors with strong growth trajectories.”
Looking ahead to the remainder of 2026, Eng Muzangwa expects Zimbabwean output to recover as deferred production from the first quarter is processed.
“I expect stronger performance in the coming quarters as smelting operations normalise. For Zimbabwe, the outlook remains positive because the country sits on some of the world’s largest platinum reserves at a time when global markets continue to face structural supply deficits,” he said.
“If current price levels are maintained, 2026 could position Zimbabwe’s platinum industry for a stronger growth cycle heading into 2027.”
