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Unki Mine reported a 2% decline in platinum group metals (PGM) production for the second quarter ended June 2025, producing 53,800 ounces.
By Ryan Chigoche
The dip was largely attributed to an anticipated lower built-up head grade and ongoing nationwide power shortages that disrupted the stability of the concentrator plant.
Zimbabwe’s worsening electricity crisis is taking a growing toll on the mining industry. Frequent load-shedding has disrupted operations, inflated production costs, and hindered output across the sector.
While major operators such as Zimplats and Blanket Mine have invested in solar and diesel-powered systems to maintain production, smaller producers continue to face extended downtimes due to limited alternatives.
The persistent power shortages are not only disrupting mining operations but also undermining export performance, particularly in energy-intensive sectors like platinum, lithium, and gold, posing a significant obstacle to the country’s broader economic ambitions for the mining industry.
The challenges at Unki mirror a broader decline across the group’s southern African operations. Valteras Platinum’s own mine production fell 15% year-on-year, with Unki’s modest decline compounded by a sharp 55% production drop at the Amandelbult complex in South Africa.
The latter was severely affected by earlier flooding at Tumela Mine, which forced the company to divert the bulk of the quarter toward infrastructure repairs. Operations at Tumela resumed in June, with full production expected to ramp up in the third quarter, though annual output is now forecast at 450,000–480,000 ounces, down from 580,000 ounces in 2024.
Despite these setbacks, the group’s overall operational base showed resilience. Excluding Amandelbult’s impact, own-mine production actually rose by 1%, driven by solid performances at Mogalakwena, Mototolo, and Modikwa.
Mogalakwena, the group’s flagship open-pit operation, delivered a 1% increase to 234,300 ounces, supported by improved throughput, stable runtime at the North concentrator, and process enhancements including the commissioning of Jameson cells.
Mototolo rose 2% to 67,500 ounces, benefiting from improved ore supply and a seven-day mining shift cycle introduced last year. Meanwhile, Modikwa (50% owned) reported a 6% increase to 38,300 ounces, thanks to higher tonnes milled and the introduction of open-pit Merensky material.
Unki Mine’s performance and the broader operational challenges were also reflected in the group’s refined and sales figures. Refined PGM production fell 17% to 954,000 ounces, while PGM sales volumes (excluding trading) dropped 22% to 981,500 ounces.
This was primarily due to the decline in mined output and the absence of the inventory drawdowns that had boosted figures in the prior year. Nonetheless, the group benefited from favourable pricing, with the average realised PGM basket price increasing 6% to US$1,508 per ounce.
This was supported by a 16% rise in rhodium prices and modest gains in platinum and palladium.
The group’s purchase of concentrate (POC) volumes decreased by 18% to 304,900 ounces, mainly due to the transition of Kroondal to a tolling arrangement in late 2024. On a like-for-like basis, excluding Kroondal, however, concentrate purchases rose 2%, driven by higher third-party receipts and improved Modikwa output.
Despite the turbulent quarter, Valteras Platinum remains on track to meet its full-year guidance, though now aiming for the lower end of projections due to the impact at Amandelbult.
The company expects mined and concentrated (M&C) production from its own operations to reach around 2.0 million PGM ounces, with POC between 1.0 and 1.2 million ounces. Refined production is projected to come in between 3.0 and 3.4 million ounces.
Still, persistent energy supply constraints, especially in Zimbabwe, remain a key operational risk. As the group looks to stabilise its output in the second half of the year, the ability to mitigate power-related disruptions will be crucial to sustaining performance and supporting long-term growth across its platinum portfolio.
