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Tapiwanashe Mangwiro
Senior Business Reporter
Zimbabwe’s platinum production is forecast to remain stable throughout 2024, according to the World Platinum Investment Council (WPIC)’s 2024 second-quarter report.
Despite a marginal decline in year-on-year output from some of the country’s key platinum producers, a balanced performance across the sector is expected to ensure steady production levels.
“Zimbabwe’s output remained stable year-on-year at 125 000 ounces (oz), as a decline at Zimplats was offset by growth at Unki,” WPIC stated in its report.
Platinum is the country’s second-largest export earner after gold. Mining is Zimbabwe’s largest source of exports, accounting for nearly between 75 and 80 percent of shipments.
The quarterly output was 1 percent lower than the 126 000 oz produced in the same period in 2023 and 5 percent below the 132 ooo oz produced in the first quarter of 2024.
For the full year, Zimbabwe’s platinum output is expected to reach 504 000 oz, representing a slight 1 percent decline compared to the 507 000 oz produced in 2023. Nevertheless, this still marks a significant 6 percent increase from the 480 000 oz produced in 2022.
The ability to maintain production levels amid operational challenges reflects the resilience of Zimbabwe’s platinum mining sector.
Zimplats, the country’s largest platinum miner, reported growth in mining volumes during the year ending June 30, 2024.
Volumes rose by 2 percent year-on-year, benefiting from increased pillar reclamation activities at Rukodzi Mine and a continued ramp-up of production at Mupani Mine.
However, the quarter saw a slight 1 percent decline in mining volumes due to operational adjustments.
The miner also noted a decline in its six elements (6E) head grade by 1 percent year-on-year, a result of lower-grade ore from the Mupani Mine and geological dilution factors.
The 6E group of metals includes platinum, palladium, rhodium, ruthenium, iridium, and gold, all of which contribute to the mine’s output.
“Six elements (6E) head grade declined by 1 percent year-on-year and quarter-on-quarter due to an increased contribution of lower-grade Mupani Mine development ore and dilution from mining across geological structures,” read Zimplats’ production report.
Despite these challenges, the group’s year-on-year milled volumes improved by 3 percent, reflecting improved mining efficiencies.
The miner experienced a slight decrease of 1 percent in milled volumes in the second quarter, attributed to a planned shutdown of the mill at the Selous Metallurgical Complex (SMC) concentrator for maintenance purposes.
These short-term setbacks are expected to be offset by ongoing optimisations in mining and processing operations.
Mimosa Mining Company contributed significantly to Zimbabwe’s stable platinum output. The mine’s 6E in concentrate volumes increased by 4 percent, reaching 255 000 oz in the full year ending June 30, 2024.
This growth was driven by plant optimisation efforts that enhanced both milling volumes and recovery rates.
Despite challenges across the global platinum market, including concerns over demand due to the rise of electric vehicles (EVs) that do not use platinum group metals (PGMs), Zimbabwe’s production remains a crucial player in the market. While global platinum supply failed to meet demand in 2023, resulting in a deficit of 851 000 oz, local mines like Mimosa have continued to invest in efficiency and productivity enhancements to maintain output.
WPIC’s report also highlights the ongoing deficit in the global platinum market, projecting a shortfall of 476 000 oz for the full year 2024, in the first quarter alone, the deficit was 369 000 oz.
Rising production costs and operational challenges across major platinum-producing regions, including South Africa and Zimbabwe, have contributed to this supply-demand imbalance.
However, market concerns about long-term platinum demand, particularly from the automotive sector, have put downward pressure on prices, despite the prevailing deficit.
Platinum mining remains a key driver of Zimbabwe’s economy, contributing approximately 13 percent to the country’s GDP. However, the sector faced headwinds in 2023, growing by only 4,8 percent, hindered by inconsistent power supply and volatile global commodity prices. Despite these obstacles, Zimbabwe’s mining sector is expected to rebound in 2024, with forecasted growth of 7,6 percent as companies ramp up production to recover lost revenue from the previous year.
In contrast, total mineral revenues are projected to fall by 10 percent, reflecting the broader trend of declining global prices for metals. The anticipated stability in platinum output from Zimbabwe, despite a challenging global environment, underscores the resilience of the country’s mining sector.
The WPIC predicts that total global mine supply will decline by 2 percent in 2024, bringing output to 5,5 million ounces, one of the lowest levels since 2013, excluding anomalies such as strikes and the Covid-19 pandemic.
Zimbabwe’s ability to maintain steady production while other major producers face declines highlights the strategic importance of its platinum sector on the global stage.
“Refined production is expected to be lower across each of South Africa, Zimbabwe, Russia, and North America,” the WPIC report noted, signaling potential supply constraints for the foreseeable future.
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