Online Reporter
Tapiwanashe Mangwiro
ZIMBABWE recorded a 13 percent decline in platinum group metals (PGMs) production during the first quarter of 2025, a key component of the country’s export portfolio. This downturn is attributed to a combination of domestic challenges and adverse global market dynamics.
According to the World Platinum Investment Council (WPIC), refined platinum output fell by 13 percent year-on-year to 115 kilo ounces (koz).
While Zimbabwe contends with supply constraints, the global platinum market is also experiencing significant deficits.
WPIC Chief Executive Officer, Trevor Raymond, reported an 816 koz shortfall during the review period, driven by a 10 percent decline in total supply amid rising demand.
“Mine supply fell 13 percent year-on-year, equivalent to 117 koz, partially offset by a two percent increase in recycling,” Mr Raymond noted.
In South Africa, heavy rainfall led to flooding and production losses, while smelter outages in both South Africa and Zimbabwe further curtailed refined output. North America also experienced disruptions due to planned mine restructuring.
The WPIC’s revised outlook forecasts that full-year mine supply will remain 6 percent below 2024 levels, despite expected sequential improvements in the coming quarters following a weak start to the year.
“South African producers cannot replicate last year’s inventory drawdown, leaving an embedded theme of constrained supply that underpins a third consecutive meaningful annual deficit,” said Mr Raymond.
Engineer Shaun Muzangwa believes technical interventions could help alleviate Zimbabwe’s production challenges.
“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 require investment — and urgently,” he said.
Ms Gladys Shumbambiri-Mutsopotsi echoed the need for reform but emphasised that structural changes beyond the mining sector are essential.
“We must diversify our export base and strengthen power infrastructure. Otherwise, platinum’s volatility will continue to undermine our fiscal stability. 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 — expected to continue through 2025 — may support prices, offering some relief to producers. However, without addressing the dual challenges of operational efficiency and energy reliability, Zimbabwe risks falling further behind its peers.
As the industry navigates this critical juncture, collaboration between miners and policymakers will be key to determining whether Zimbabwe can regain momentum and contribute meaningfully to both national revenue and the global platinum supply chain.
Engineer Muzangwa attributes the production 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 stressed that these factors, combined with erratic power supply, have undermined Zimbabwe’s ability to build on last year’s record output.
“In 2024, we relied on a buffer of semi-finished inventory,” he explained. “But that drawdown is now exhausted, and without reliable electricity, even the most efficient mine panels cannot operate at full capacity.”
Power disruptions — stemming from regional grid instability and low reservoir levels at Kariba Dam — have forced unscheduled shutdowns, exacerbating production losses.
For the economy, platinum exports are a vital source of foreign currency and government revenue. Economist Ms Shumbambiri-Mutsopotsi highlighted the fiscal implications.
“Exports rose marginally from US$214 million in the first quarter of 2024 to US$224 million in the same period of 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 reduces the contribution to our national fiscus at a time when revenue streams are already under strain.”
She noted that Government budgets had anticipated strong 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.”
Londile Moyo