Mining ZimbabweLatest Mining News, Policy and Industry Updates

Revenue from Zimbabwe’s platinum exports is expected to plummet by 37% to US$413,1 million this year as a result of falling commodity prices and power issues that have disrupted production in the mining sector, a government official has said.

The Southern African nation has been battling a serious power crisis, which worsened after output at the hydroelectric power station was rattled by low water levels on Lake Kariba.

As a result, power outages have over the past months been grounding industries for up to 18 hours a day, triggering extensive production costs.

However, electricity supply is expected to improve drastically in the third quarter as Hwange Unit 7 was successfully synchronised with the national grid last month, while Unit 8 is currently undergoing test runs, which have seen a reduction in power outages in the past weeks.

These two units have a combined 600 megawatts installed capacity.

“Our projections to 2030 also reflect that trend where platinum production will be declining in the near future,” Mines and Mining Development permanent secretary Pfungwa Kunaka told the Zimbabwe Independent this week.

“Challenges such as electricity shortage and fall in commodity prices appear to be the factors that will negatively impact on production and lead to lower output.

“This notwithstanding in terms of platinum reserves and output, Zimbabwe is a force to reckon with, standing at number three behind South Africa and Russia. Our export revenues reached US$660,9 million in 2022 and (are seen declining) to US$413,1 million in 2023.”

According to the Chamber of Mines of Zimbabwe 2022 annual report, platinum output is expected to increase to 16 000 kilogrammes this year, while palladium is seen reaching the 13 600kg mark.

“The anticipated increases are expected to emanate from ongoing capital projects across active players while in the medium to long term, new projects including Karo Resources, Todal and GDI (Great Dyke Investments) are expected to boost PGMs (platinum group metals) production,” it said.

The three PGM operations of Zimplats, Mimosa Mining Company and Unki Mines continued to operate at (near) full capacity utilisation in 2022.

Karo Resources officially commenced construction operations during the year, while Todal advanced the development of the project in the same period.

PGMs production for 2022 increased across most of the metals in the basket. Platinum achieved 15 480kg, palladium (12 927kg), rhodium (1 366kg) and ruthenium (1 362kg).

Key matters for the PGMs industry included upward review in royalty for platinum from 2,5%, to 7% and export tax on unbeneficiated PGMs.

The developments also came as Zimbabwe is expected to be the biggest beneficiary of platinum shortages later this year, with the global market projected to suffer a short supply of 983 000 ounces, the largest deficit since the 1970s, according to the World Platinum Investment Council (WIPC).

Analysts see the supply deficit as a way to shore up prices, a development that could work in favour of Zimbabwe, the world’s third-largest producer after Russia and South Africa, which anticipates increased output this year.

The price of platinum on the international markets continues to rebound, as traders worry about the projected deficit in the second half of this year.

WIPC has cited a number of market developments during the first quarter of 2023, which in aggregate, the council contends will have a significant negative impact on market balances, hence its deficit outlook for the year.

The government has been encouraging foreign investment in the mining industry to boost production and generate much-needed forex revenue for the country.

Zim Independent

In an endeavour to ensure that Young Miners contribute significantly to the US$12 billion mining industry, the participation of women together with formalisation and professionalisation of the small-scale and artisanal mining industry were key takeaways at Young Miners Forum (YMF) 13 Anniversary, Awards and Field day held at Clifton 15 Gold Mine in Mberengwa last week.

Rudairo Mapuranga

Speakers at the Event highlighted the importance of professionalising the ASM sector at the same time including female participation to build a world-class ASM industry which would lead to the attainment of the US$12 billion industry.

Speaking to Mining Zimbabwe on the sidelines of the field day YMF CEO Payne Farai Kupfuwa said his organization was continuing to rewrite and redefine the ASM to a professional industry that has government confidence in economic resuscitation.

“The idea behind the Young Miners field day was inspired by Agriculture field day where we identify a successful young miner and invite other young miners to learn how to run a successful mining venture. We are continuing with rewriting and redefining the small-scale mining narrative as we continue to advance and upscale youth entrepreneurship in the small-scale mining industry by formalising and professionalising the sector. We are moving in line with the attainment of the US$12 billion mining economy, we also have young miners who are focusing on the value chain, beneficiation and equipment supply,” Kupfuwa said.

YMF patron Ms Mupawaenda speaking at the event said her organisation was determined to empower women in the whole mining value chain as this would bring sustainable growth and development of the industry.

“As YMF we are pledging not to leave anyone behind especially young women by having promotional workshops to inspire and encourage them to consider mining as a career, to give them support as they enter into the sector, to find ways to encourage those who are already involved to get formalised by registering their companies, to buy claims, EPOs, to support each other and for the male young miners to work together with the female young miners in order to achieve our 2023 sustainable mining economy valued at 4US$12 Billion,” she said.

Mr Ronald Mugangavari, Director and CEO of Clifton 15 Gold Mine, served a speech to aspiring mining entrepreneurs on the aspect of formalization and growing big in the sector. He applauded the YMF CEO, Mr Payne Kupfuwa, for facilitating a platform that improves and helps the young miners achieve their dream.

Zimbabwe Women in Mining Association (ZAWIMA), was represented by Mrs Kundai Chikonzo Midzi, who applauded the female award winners for a job well-done in their endeavours in the mining industry, urging the participation of more women in the sector and their astonishing role in value addition.