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Anglo American’s recent decision to relinquish control of Anglo American Platinum (Amplats), now rebranded as Valterra Platinum, has sent ripples across the global mining sector.
By Rudairo Mapuranga
For Zimbabwe—a nation with significant platinum group metals (PGMs) investments—this development raises questions about the long-term prospects of the sector, particularly in light of falling PGM prices, global economic shifts, and an increasingly complex geopolitical landscape.
Valterra Platinum, the newly independent entity, now takes charge of strategic assets across South Africa and Zimbabwe, including Unki Mine. While this spin-off is part of Anglo American’s broader restructuring to focus on copper and iron ore amid a failed $49 billion takeover bid from BHP Group, it cannot be divorced from the weakening fundamentals of the PGM market.
Prices for rhodium and palladium, key metals in the PGM suite, have plunged 56% and 43% respectively since 2023. As investors digest Anglo’s strategic retreat, many are left wondering whether this signals a broader decline in the value and potential of PGMs.
Zimbabwe, home to major PGM assets like Zimplats, Mimosa, and Unki, finds itself in a precarious position. The country has been banking on PGMs to contribute significantly to its US$12 billion mining economy roadmap. But as the price and demand for PGMs soften, the sustainability of these ambitions is under scrutiny.
Add to this the burden of a 77% effective tax rate, power shortages, and forex-related losses, and the PGM narrative in Zimbabwe begins to unravel.
Despite the challenging market, mining companies continue to invest. Zimplats has committed over US$444 million to a new smelter and SO₂ abatement projects. Unki Mine is investing US$700,000 into solar expansion. These investments are vital steps toward value addition and environmental sustainability, yet their viability is heavily dependent on global PGM demand and pricing stability.
Valterra’s leadership, while optimistic, acknowledges the challenges. In a recent interview, Valterra CEO Craig Miller emphasised the long-term value of PGMs and noted that platinum prices should be higher based on structural deficits.
However, optimism must now contend with market realities: investor caution, diminishing auto-catalyst demand due to electric vehicle uptake, and the rise of China’s influence on commodity pricing.
China, a dominant player in global manufacturing and the battery supply chain, increasingly dictates prices for key materials like lithium, nickel, and platinum.
As expert Magnus Bekker noted, “As long as China keeps commodity prices down, they will control many global manufacturing sectors.” For Zimbabwe, this is a double-edged sword.
While Chinese investments support local mining operations, they also mean local producers remain vulnerable to China’s pricing strategies.
There’s also scepticism about platinum’s role in hydrogen battery technology. Once seen as a saviour for PGM demand, hydrogen applications may not be as impactful as expected. Bekker bluntly called hydrogen for energy storage “one of the dumbest ideas ever,” stating that any future demand could be met by recycling platinum from scrapped internal combustion engine (ICE) vehicles.
Against this backdrop, the exit of Anglo American from Amplats, just as platinum prices struggle, could well be seen as a statement of retreat. It suggests that even the most seasoned players are recalibrating expectations and de-risking their exposure to PGMs.
To safeguard its future, Zimbabwe must adapt. This includes ramping up value addition, establishing beneficiation and refining plants, and ensuring policy consistency. Local processing not only retains more value but also protects producers from external price shocks. Furthermore, regional collaboration, especially with South Africa, could pave the way for an integrated PGM industrial complex across Southern Africa.
Investment in innovation and battery technology must also be prioritised. Zimbabwe, rich in lithium and PGMs, could emerge as a key player in next-generation battery materials—if it builds the necessary infrastructure and attracts the right partners.
Ultimately, while Anglo’s exit may not spell doom for PGMs, it certainly demands reflection. Zimbabwe’s PGM sector stands at a crossroads: cling to an outdated model of raw exports, or evolve into a competitive, integrated, and value-driven industry. The time to decide is now.
