Despite many mining companies increasing production, mining revenue is set to decline by approximately 20 per cent and is expected to further decline by 10 per cent in 2024 due to softening commodity prices. This was revealed by the Chamber of Mines of Zimbabwe State of the Mining Industry Survey Report presented at RTG Hotel in Bulawayo.
According to the survey report the country’s mining executives are expecting commodity prices to further decline in 2024 due to geopolitical tensions and weak global economic outlook.
“Analysis of survey responses shows that mineral revenue for 2023 is set to decline by approximately -20% and is expected to further decline by an average of 10% in 2024 due to softening commodity prices. Despite most mining companies planning to ramp up production to compensate for revenue losses due to low prices, the production increase will be more than offset by the decline in prices.
“Most mining executives expect the commodity market conditions to worsen in 2024 They are anticipating commodity prices to further the slowdown in 2024, mostly for PGMs and base metals citing geopolitical tensions and weak global economic outlook,” the report reads in part.
According to the report, PGM producers are expecting PGM prices to slow down with platinum prices expected to fall by (5%), rhodium (15%) and palladium (10%). Gold producers are expecting gold prices to fall by an average of -8%, while lithium producers and nickel producers are expecting price declines averaging 14% and 10%, respectively.