Online Reporter
Tapiwanashe Mangwiro
ZIMBABWE recorded a 13 percent drop in platinum group metals (PGMs), a key element of the country’s export basket, production during the first quarter of 2025, weighed down by a combination of domestic challenges and the impact of demand dynamics on the global market.
According to the World Platinum Investment Council (WIPC), refined platinum output fell by 13 percent year-on-year to 115 kilo ounces (koz).
While the country grapples with production challenges, the global platinum market is similarly beset by deficits.
Platinum is Zimbabwe’s second largest export after gold.
WIPC chief executive officer (CEO) Trevor Raymond reported an 816 koz shortfall in the period under review, weighed down by a 10 percent drop in total supply against rising demand.
“Mine supply fell 13 percent year-on-year, equivalent to 117 koz, partly cushioned by a 2 percent uptick in recycling,” Mr Raymond noted.
In South Africa, heavy rains triggered floods and lost production, while smelter outages in both South Africa and Zimbabwe further depressed refined output.
North America also saw interruptions due to planned mine restructuring.
The WIPC’s updated outlook predicts full-year mine supply will remain 6 percent below 2024 levels, even as sequential quarterly improvements are expected after the weak opening to the year.
Mr Raymond explains, “South African producers can’t replicate last year’s inventory drawdown, leaving an embedded theme of constrained supply that underpins a third consecutive meaningful annual deficit.”
Eng Muzangwa insists that technical interventions can help mitigate Zimbabwe’s production woes.
“We are exploring more rigorous predictive maintenance regimes and remote monitoring of key assets to pre-empt failures.
“Upgrading our furnace control systems should improve throughput once we stabilise power. But these solutions need investment, and fast,” he said.
Economist Gladys Ms Shumbambiri-Mutsopotsi agrees on the urgency of reform but warns that structural shifts are needed beyond the mines.
“We must diversify our export base and strengthen power infrastructure. Otherwise, platinum’s volatility will continue to shake our fiscal foundations.
“At current output forecasts, every dollar of lost platinum revenue has a magnified impact on public services and debt servicing,” she said.
Globally, the platinum market’s persistent deficit, forecast to extend through 2025, may buoy prices, offering some relief to producers.
“However, without addressing the twin challenges of operational efficiency and energy reliability, the country risks falling further behind its peers.
As the industry navigates this critical juncture, the collaboration between miners and policymakers will determine whether Zimbabwe can reclaim its momentum and contribute robustly to both national coffers and the wider platinum balance sheet.
Engineer Shaun Muzangwa, an industry expert, attributes the slump to a confluence of operational issues: “Maintenance schedules at Unki extended beyond initial plans, and lower ore grades compounded the strain on processing capacity.
“We also faced reduced availability of our mechanised fleet, and furnace optimisation work at Zimplats sidelined significant volumes,” he said.
Eng Muzangwa stresses that these factors, combined with erratic power supply, have undercut Zimbabwe’s ability to capitalise on last year’s record output.
“In 2024, we rode on a buffer of semi-finished inventory,” he explained, “but that drawdown is exhausted, and without reliable electricity, even the most efficient mine panels can’t operate at full tilt.”
Power disruptions, stemming from regional grid instability and reservoir levels at Kariba Dam, have forced unscheduled shutdowns, exacerbating production losses.
For the economy, platinum exports are a vital source of foreign exchange and Government revenue, and economist Gladys Shumbambiri-Mutsopotsi highlighted the fiscal ramifications.
“Exports rose marginally from US$214 million in the first quarter of 2024 to US$224 million during the same period in 2025, but that increase could not offset the drop in average realised prices, from US$911 per ounce to US$851.
“This dual pressure of lower volumes and prices shrinks the contribution to our national fiscus just when revenue streams are under strain.”
Ms Shumbambiri-Mutsopotsi points out that Government budgets had factored in robust platinum earnings for 2025 based on last year’s highs.
“With a 4 percent year-on-year forecast decline to 491 koz for full-year output, we must recalibrate expectations.
“Reduced export receipts will constrain public spending on infrastructure and social services unless alternative revenue sources are developed swiftly.”
