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RBZ Wary of Subdued PGM Prices’ Impact on Export Earnings

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RBZ Wary of Subdued PGM Prices’ Impact on Export Earnings

The Reserve Bank of Zimbabwe (RBZ) is concerned about the anticipated decline in platinum group metal (PGM) prices in 2025, driven by slowing demand from the automotive sector as the shift to renewable energy accelerates.

By Rayan Chigoche

Platinum prices have fluctuated significantly over the years. In March 2008, platinum hit an all-time high of $2,290 per ounce due to strong demand and supply concerns. However, following the global financial crisis, prices dropped. By mid-2022, platinum was around $1,300 per ounce, falling below $1,000 per ounce by June 2022 due to reduced demand, a stronger U.S. dollar, and economic uncertainty.

Between 2022 and 2023, platinum prices remained volatile, fluctuating between $900 and $1,000 per ounce. Market forecasts predict further weakening in 2025, with prices likely staying within this range due to economic slowdowns and increased recycling supply.

In the 2025 RBZ Monetary Policy Statement, Governor John Mushayavanhu warned that declining PGM prices would significantly impact export earnings. “The demand for PGMs is likely to remain subdued owing to the shifting structure of the automotive sector against the growth in the electric vehicle sub-sector. These developments will weigh down prices, with negative spillovers to Zimbabwe’s export proceeds,” he said.

To counteract this, the RBZ announced a controversial policy—the liquidation of 30% of export proceeds, a move seen as a significant blow to PGM producers.

However, the RBZ remains optimistic about gold prices, which are expected to stay strong due to geopolitical tensions and safe-haven demand, helping stabilize export revenues.

Meanwhile, total foreign currency receipts for 2024 amounted to US$13.32 billion, a 21% increase from US$11 billion in 2023. Export proceeds contributed 59.2% of this, totalling over US$7.8 billion.

Kuvimba Seeks US$950M to Supercharge its Projects

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Kuvimba Seeks US$950M to Supercharge its Projects

Zimbabwe’s state-owned miner, Kuvimba Mining House (KMH), is gearing up for a new round of financing to revitalize several key mining projects, just a year after the government took full control of the company through the Mutapa Investment Fund, the country’s sovereign wealth fund, Mining Zimbabwe can report.

By Rudairo Mapuranga

Under the leadership of GCEO Trevor Barnard, Kuvimba is seeking to raise US$950 million from development banks, mining companies, and international traders. This funding will support the development of lithium, platinum, and gold assets, Barnard said in an interview.

“Access to all the large development banks, to all the funding, to all the major traders has just opened up,” said Barnard, praising the company’s change in ownership structure. He noted that the restructuring has significantly boosted Kuvimba’s credibility and ability to attract investment.

A major portion of the capital—more than half—will be directed toward building an underground platinum mine at the long-delayed Darwendale project. Barnard, who assumed the CEO role in December, emphasized the importance of this platinum project but also pointed out that a US$275 million lithium venture may come online sooner due to faster development timelines.

Kuvimba has already secured a joint venture with Chinese mining companies to develop its lithium assets, with plans to finalize the deal by March 2025. The first phase of the project, known as Sandawana, will commence production within 15 months of signing, eventually producing 500,000 tons of lithium concentrate annually. The Chinese partners will finance the development and hand over the project to Kuvimba once the loan is repaid, a process expected to take less than five years.

Barnard also revealed that the company is exploring further development of the Sandawana area and has already attracted interest from international investors, including Cluff Africa Ltd. and a major European commodity trader. Additional Chinese investors have expressed interest, and a deal could be finalized within six to 12 months.

In terms of platinum, Kuvimba is planning to begin with a smaller open-pit mine at the Darwendale deposit this year. The open-pit project will require an investment of about US$50 million, with the company intending to partner with another miner to process the extracted ore. Simultaneously, Kuvimba is in discussions with development banks for loans to finance the larger underground platinum mine and processing facilities, which are expected to be operational within the next three years.

Zimbabwe boasts the world’s second-largest platinum reserves after South Africa and has emerged as Africa’s leading lithium producer, positioning Kuvimba as a key player in the country’s mining sector. The company is now 70% owned by the Mutapa Investment Fund, with the remaining shares held by entities controlled by the Ministry of Finance, including state pension funds, power utilities, and a deposit insurance fund.

This ambitious fundraising initiative marks a significant step forward for Kuvimba as it seeks to unlock the potential of Zimbabwe’s vast mineral wealth and contribute to the country’s economic growth.

Mnangagwa Appoints second Deputy Minister of Mines

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Mnangagwa Appoints second Deputy Minister of Mines

President Mnangagwa has appointed Mutoko North Member of Parliament, Hon Caleb Makwiranzou, as the second Deputy Minister of Mines and Mining Development, Mining Zimbabwe can report.

By Rudairo Mapuranga

As announced by Dr Martin Rushwaya, Chief Secretary to the President and Cabinet, on Thursday, the appointment—made under Section 104, Subsection 2 of the Constitution of Zimbabwe—is with immediate effect.

Hon. Makwiranzou will be responsible for overseeing the critical areas of oil and gas research, as well as other strategic minerals exploration.

The Ministry now has two Deputy Ministers with the first being Sanyati MP Polite Kambamura.

Kambamura is an experienced Engineer by profession who has worked for local mines including Mimosa and some South African mines.

Gold on Track to hit US$100/g in 2025 Amid Trade War Chaos

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Gold on Track to hit US$100/g in 2025 Amid Trade War Chaos

Gold prices are on a meteoric rise, fueled by escalating global trade tensions and inflation concerns. As of today, the international price of gold stands at US$93.85 per gram, with analysts predicting that the precious metal could hit the US$100/g mark this year, Mining Zimbabwe reports.

By Rudairo Mapuranga

This upward trajectory is mirrored in Zimbabwe’s local market, where the country’s sole gold buyer and exporter, Fidelity Gold Refinery, is offering US$88.24 per gram for gold with a purity of 90% and above.

The recent surge in gold prices follows the announcement by former U.S. President Donald Trump of an additional 25% tariff on all steel and aluminium imports. The tariff hikes, along with plans to impose reciprocal tariffs later this week, have created a perfect storm of uncertainty in the global trade environment, pushing demand for safe-haven assets like gold higher.

“Obviously, the tariff war is behind the rise; it just reflects more uncertainty and more tension in the global trade situation,” said Marex analyst Edward Meir in a recent note. The threat of further tariffs could exacerbate inflation within the U.S., causing ripple effects in global markets.

Investors are now closely watching U.S. economic data, with the Consumer Price Index (CPI) and Producer Price Index (PPI) due for release later this week. According to Meir, if inflation data underperforms, the U.S. dollar could weaken, further inflating gold prices. However, if inflation surprises on the upside, higher U.S. yields could strain gold’s momentum, although the metal’s market resilience might mitigate these effects.

Gold has already set a new record seven times this year, marking a nearly 11% rise in 2025, following a 27% gain in 2024. Analysts believe the yellow metal is now gaining enough momentum to target the US$3,000 per ounce milestone on the New York Mercantile Exchange, a level that could translate to over US$100 per gram on the international market.

“Gold is very clearly targeting the $3,000 level and the market is incredibly strong, almost relentless. Now it’s only a question of when it will scale the level and not if it will,” said independent analyst Ross Norman.

The U.S. trade war has further deepened concerns, with unusually high premiums for gold contracts in New York. Central banks, particularly China’s, are also playing a pivotal role, with the People’s Bank of China increasing its gold reserves for the third consecutive month in January.

“With China resuming its bullion purchases and allowing insurance funds to invest in gold, these moves further bolster the bullish momentum,” said Han Tan, chief market analyst at Exinity Group.

While the international price of gold edges closer to US$100 per gram, Zimbabwe’s local market, regulated by Fidelity Gold Refinery, is keeping pace. The latest rates are:

  • SG 90% and above: US$88.24 per gram
  • SG 85% to below 90%: US$87.31 per gram
  • SG 80% to below 85%: US$86.37 per gram
  • Fire Assay Cash Price (above 100g): US$88.71 per gram

Local prices reflect the global inflationary pressures and uncertainties stemming from the trade war. Zimbabwe’s gold producers, especially small-scale miners, are benefiting from the global rally, despite paying royalties of 1% for small-scale miners and 5% for primary producers.

With central banks ramping up purchases and market analysts predicting further economic disruptions from trade policies, gold seems poised to surpass US$100 per gram this year. This would represent a historic milestone for the precious metal, which continues to outperform most other asset classes globally.

JPMorgan Chase, Goldman Sachs, and Citigroup are all bullish on gold’s prospects, with price targets ranging from US$2,950 to US$3,000 per ounce by the end of 2025.

Gold’s remarkable ascent, driven by a cocktail of inflation, trade wars, and central bank purchasing, is cementing its status as the ultimate safe-haven asset in an era of global uncertainty.

Gold Hits Record High as Trump’s New Tariffs Spark Market Volatility

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Gold Hits Record High as Trump’s New Tariffs Spark Market Volatility

Gold prices surged to a record high of $2,933 per ounce on February 11, 2025, up from $2,917.90 the previous day, driven by escalating trade tensions under the U.S. President’s new tariff policies.

By Ryan Chigoche

The surge followed Donald Trump’s announcement of fresh 25% tariffs on steel and aluminium imports, triggering volatility in financial markets.

Since the start of the year, gold has gained 10%, reflecting heightened investor demand for safe-haven assets amid global uncertainty.

Aluminium prices also faced upward pressure as concerns grew that the tariffs could disrupt supply chains and dampen economic growth, potentially reducing demand for the metal. The three-month aluminium contract on the London Metal Exchange edged up 0.3% to $2,635 per tonne.

According to data from the American Iron and Steel Institute, the largest steel exporters to the U.S. include Canada, Brazil, Mexico, South Korea, and Vietnam, with Canada also serving as the top supplier of imported aluminium.

The new tariffs are expected to raise costs for U.S. manufacturers, who rely on imports for an estimated 40% to 45% of their aluminium and 12% to 15% of their steel.

The escalating trade war further strains an already fragile global economy, which continues to grapple with geopolitical crises such as Russia’s military actions in Ukraine and the prolonged conflict in Gaza. These disruptions have destabilized supply chains, driven up commodity prices, and fueled inflation.

In response, central banks have pursued interest rate hikes to curb inflation, though these measures have also constrained economic growth by tightening liquidity for investments.

Trump’s return to the political stage has brought renewed tariff threats, targeting imports from China, Canada, Europe, and Russia, further fueling gold’s rally as investors seek safe-haven assets.

His latest round of global steel and aluminium tariffs amplifies concerns of an intensifying trade war, adding to previous metal duties imposed during his first term. Back then, Trump had introduced 25% tariffs on steel and 10% on aluminium but later granted duty-free exemptions to Canada, Mexico, and Brazil.

Former President Joe Biden later negotiated duty-free quota agreements with the United Kingdom, the European Union, and Japan. However, Trump’s latest policy shift leaves uncertainty over whether these exemptions and quotas will remain in place.

Man Jailed 20 Years for Killing Mine Security Guard

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Man Jailed 20 Years for Killing Mine Security Guard

A Gweru man, Colleen Ngwenya, has been sentenced to 20 years in prison for the murder of a security guard at Ngwenya Mine, Lower Gweru. The tragic incident, which occurred in 2021, stemmed from a dispute between Ngwenya and the now-deceased security officer over the possession of weapons at the mine, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the National Prosecuting Authority of Zimbabwe, on the day of the incident, the security guard confiscated Ngwenya’s knives, instructing him to retrieve them when leaving the mine. Later that day, Ngwenya ambushed the guard and stabbed him in the back and buttocks. The wounded guard was discovered by a passerby, who sought help, but unfortunately, the victim succumbed to his injuries before assistance could arrive.

Ngwenya was arraigned before the Midlands High Court Circuit, where he was found guilty and sentenced to 20 years’ imprisonment for the fatal stabbing.

This case is one of many violent altercations in Zimbabwe’s mining sector, particularly in areas where artisanal mining is prominent. The rise of illegal mining has led to increasing conflicts over resources, often escalating into deadly violence. Many of these disputes involve the use of dangerous weapons like machetes and knives.

The Midlands High Court Circuit has played a key role in addressing these cases. During its recent session, the court completed a total of 60 cases, many of them involving violent disputes among miners. Of the cases heard, 24 offenders were convicted of murder, receiving sentences ranging from 18 years to life in prison. The remaining cases saw either reduced charges of culpable homicide or acquittals due to insufficient evidence.

Authorities, including the National Prosecuting Authority of Zimbabwe (NPAZ), continue to express concern over the surge of violence in mining communities and are pushing for better regulation of the artisanal mining sector. As Zimbabwe’s mining industry continues to expand, there is a growing need for conflict resolution mechanisms to ensure that disputes over mining claims do not result in further loss of life.

 

Gold buying prices per gram in Zimbabwe, 11 February 2025

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Gold buying prices per gram in Zimbabwe, 11 February 2025

Gold buying prices per gram in Zimbabwe today 11 February 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$88.24g
SG ABOVE 85% BUT BELOW 90% US$87.31g
SG ABOVE 80% BUT BELOW 85% US$86.37/g
SG ABOVE 75% BUT BELOW 80% US$85.44/g
SAMPLE BELOW 10g BUT ABOVE 5g US$84.04/g

Fire Assay CASH $88.71/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match the world market.

Botha Mine Reasserts Transparency in Wake of Fraud Allegations

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Botha Mine Reasserts Transparency in Wake of Fraud Allegations

Bindura-based mine, Botha Gold Mine, has taken decisive steps to address ongoing allegations and restore stakeholder confidence following the suspension of its top leadership, Mining Zimbabwe reports.

By Ryan Chigoche

In a recent press statement, the company clarified that the alleged suspensions related to a “fraudulent court order,” which it claimed is null and void, reaffirming the integrity of its management team.

Earlier this year, Botha Gold Mine suspended General Manager Angela Mpofu-Chisvo over allegations of theft and fraud involving over US$300,000. However, the company has now publicly dismissed these claims, confirming that they were part of a deceptive scheme orchestrated by minority shareholders attempting to illegitimately seize control of the mine.

The company’s statement affirms that the executive management team, led by General Manager Mrs Mpofu-Chisvo, continues to oversee the mine’s operations without disruption. Botha Gold Mine also extended a sincere apology to those wrongfully implicated in the controversy, specifically Mr Themba Hlongwani and Mrs Mpofu-Chisvo, who were accused of misappropriating funds and concealing information.

The company emphasized that these accusations were part of a broader plot to destabilize the organization. “We put the record straight that no such incident occurred,” the statement declared, noting that these malicious claims were merely a strategy by a faction attempting to take over the mine.

In addition, the company issued a strong warning to the public, advising them to exercise caution and refrain from engaging in business transactions with the individuals involved in the fraudulent activities.

These individuals—Munyaradzi Nzarayapenga, Leonard Rwambiwa, Dudzai Ruzvidzo Kajokoto, Ashley Ziyarura Zulu, Simbarashe Nzenza, and Tendai Chinyani—are not directors or representatives of the company.

Botha Gold Mine stated that it will not recognize any agreements, contracts, or transactions entered into by these rogue parties and disassociates itself entirely from any actions or representations made by them outside of the authorized executive management structure.

This move follows an earlier attempt by certain minority shareholders to use fraudulent court orders in an effort to unseat the mine’s leadership. With the fraudulent suspensions now declared void, Botha Gold Mine has made it clear that its leadership and operational integrity remain intact.

The company’s commitment to ethical business practices is further underscored by the launch of “Operation Ngatibatanei/Asibambaneni” (Uniting with artisanal miners for sustainable mining), which emphasizes community engagement and sustainable development. Through this initiative, Botha Gold Mine aims to foster collaboration with artisanal miners to achieve sustainable mining practices.

By reaffirming its dedication to transparency, integrity, and accountability, Botha Gold Mine seeks to restore trust among its stakeholders and set a strong example of good governance within Zimbabwe’s mining sector. The company has reported the fraudulent activities to the Zimbabwe Republic Police, and the perpetrators will face legal action.

Anglo American Platinum Forecasts Sharp Earnings Decline for FY2024

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Anglo American Platinum Forecasts Sharp Earnings Decline for FY2024
Anglo American Platinum, one of the world’s largest producers of platinum group metals (PGMs), is bracing for a significant earnings decline for the year ended 31 December 2024.
By Ryan Chigoche
The company attributes this downturn to falling PGM prices and operational disruptions, reflecting the broader challenges facing the industry.
Both headline earnings per share (HEPS) and basic earnings per share (EPS) are expected to experience substantial declines.
The PGM mining group expects headline earnings to decrease by 36% to 46%, falling to between R7.6 billion and R9.0 billion from R14 billion in 2023. HEPS is projected to decline to between 2,889 cents and 3,421 cents per share, down from 5,330 cents per share in the previous period.
Basic earnings are expected to decline by 42% to 52%, ranging between R6.3 billion and R7.6 billion, compared to R13 billion in 2023. EPS is forecast to drop to between 2,395 cents and 2,889 cents per share, from 4,952 cents per share in the prior year.
The primary factor behind this downturn is a 13% drop in realized ZAR PGM prices, with palladium and rhodium prices plummeting by 24% and 30%, respectively, in US dollar terms. Weak global demand, particularly in the automotive sector where PGMs are used in catalytic converters has exacerbated the decline.
“The decrease in earnings compared to 2023 is primarily due to a 13% decline in realized ZAR PGM prices,” the company stated in a trading update.
Beyond weaker metal prices, Anglo American Platinum incurred non-recurring costs totalling R3.5 billion, linked to operational and corporate restructuring, the demerger of its PGM business, and associate losses.
 A further R1.9 billion asset write-down, mainly related to coarse particle recovery technology at the Mogalakwena mine, also weighed on earnings. These one-off costs reduced EPS and HEPS by approximately 1,700 cents and 1,100 cents per share, respectively.
Taxation and royalty payments also declined in line with lower profits, reflecting the tough operating environment.
Anglo American Platinum’s Zimbabwean subsidiary, Zimplats, reported a 7% drop in production, attributed to power outages and declining ore grades.
The challenges faced by Anglo-American Platinum and Zimplats reflect broader struggles across the PGM industry.
Weak metal prices, sluggish demand, and oversupply have eroded profitability while rising operational costs further squeeze margins.
The growing adoption of electric vehicles (EVs), which do not require catalytic converters, poses a long-term threat to PGM demand.
While PGMs remain essential for internal combustion engine vehicles, the global push for decarbonization could lead to structural declines in demand over the coming decades.
Despite these headwinds, Anglo American Platinum remains committed to operational efficiency and portfolio optimization. The company aims to unlock value from its resource base, enhance efficiency, and position itself for long-term growth. However, navigating the current volatile market will require strategic adjustments.

ZDAMWU Recognized at Annual National Labour Champions Awards 2024

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ZDAMWU Recognized at Annual National Labour Champions Awards 2024

The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has once again demonstrated its commitment to excellence in trade union leadership, as evidenced by its recent recognition at the Annual National Labour Champions Awards 2024, Mining Zimbabwe can report.

The event, organized by the Human Capital Institute (HCI), celebrated outstanding contributions to labour rights and union leadership, with ZDAMWU and its leaders receiving prestigious accolades.

ZDAMWU General Secretary Justice Chinhema was honoured with the Platinum Award for Outstanding Trade Union Leadership. This recognition underscores Chinhema’s unwavering dedication to advocating for workers’ rights and improving labour conditions within the mining sector. His leadership has been instrumental in addressing critical issues workers face, ensuring their voices are heard, and fostering a culture of fairness and equity.

The awards ceremony highlighted the importance of sustained and impactful communication in labour movements. It emphasized the need for leaders to leave a lasting legacy that benefits future generations. The event also called for a collective effort to create a better world, urging leaders to make their lifetime signature one of positive change and enduring influence.

ZDAMWU’s participation in the Annual National Labour Champions Awards 2024 not only celebrates its achievements but also reinforces its commitment to advancing the welfare of workers in Zimbabwe’s diamond and allied minerals industries. The union’s efforts align with the broader goals of the Human Capital Institute, which seeks to recognize and promote excellence in human capital development and labour leadership.

As ZDAMWU continues to champion the rights of workers, its recognition at this prestigious event serves as a testament to the union’s impactful work and the dedication of its leaders. The Platinum Award for Justice Chinhema is a well-deserved honour, reflecting his significant contributions to trade unionism and his commitment to creating a better future for all workers.

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