Zim in record platinum output, but . . .

ZIMBABWE’S platinum production boomed in 2023, exceeding half a million ounces for the first time, but miners are grappling with slumping global prices and are resorting to cost-cutting measures to stay afloat, The Sunday Mail Business can report.

For the first time, platinum production surged to a record 507 000 ounces (oz) last year, a 6 percent increase from 2022, driven by investments that boosted operational stability.

Zimbabwe has the world’s third-largest platinum group metals (PGM) resource along the mineral-rich Great Dyke, after South Africa and Russia. Several upcoming and expansion platinum projects valued at over US$8 billion are expected to position Zimbabwe as a global platinum powerhouse.

World Platinum Investment Council (WPIC), in its latest world platinum production report, said Zimbabwe’s output continued its steady increase, surpassing the 500 000 oz milestone for the first time.

“The country benefits from operational stability, mechanised mining methods, resulting in fewer safety stoppages, and stable workplace relations. The realisation of volumes from the commissioning of the third concentrator at Zimplats and the Unki concentrator debottlenecking project contributed to the record production,” WPIC said.

The country’s operating PGM mines — Zimplats, Unki and Mimosa — are majority owned by South African companies and have been involved in different expansion and new mine development projects at a time when commodity prices continue to weaken.

Zimbabwe’s largest platinum producer, Zimplats, says all major capital projects under execution are progressing according to plan as the group seeks to expand capacity.

Under its US$1,8 billion capital expenditure investment, Zimplats’ strategy involves the setting up of integrated projects, including the development of new mines; the expansion of the smelter; the construction of an additional concentrator, a base metal refinery, a sulfuric acid plant; and the setting up of a 110-megawatt solar power plant.

According to the WIPC, in the fourth quarter of 2023, Zimbabwe’s platinum output increased by 8 percent to 133 000 oz from 123 000 oz in Q4 2022.

“Zimbabwe’s quarterly production rose by an estimated 8 percent year-on-year, reaching an all-time high of 133 000 oz.

“All three of the country’s operations demonstrated year-on-year growth, with Unki accounting for the bulk of this through increased throughput and head grade,” reads the report.

Zimbabwe’s production is poised to maintain its “long-term stability, with minimal changes” expected on a year-on-year basis.

This growth rate indicates a positive trend in Zimbabwe’s platinum mining sector and highlights the country’s efforts to enhance its production capacity and output levels.

Karo Platinum Holdings is going ahead with the development of its platinum mine despite the falling PGM prices, with US$100 million already spent on mine infrastructure development.

The mining company’s project in Zimbabwe is an open-pit platinum group metals (PGMs) asset under construction at a projected cost of US$391 million for phase 1.

Country manager Dr Josephat Zimba said the project was being undertaken in the middle of a challenging environment, with PGM prices being the lowest in recent times, but they continue to count on the Government for support in many respects to get the project to completion. One of them is fiscal support.

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