Zimbabwe’s platinum industry is set for growth in 2025, with production expected to rise despite a sluggish recovery in global metal prices, Mining Zimbabwe can report.
By Ryan Chigoche
According to the Chamber of Mines, platinum output is projected to reach 19.6 tonnes, up from 18.9 tonnes in 2024, while palladium production is set to increase by 3% to 16 tonnes. Major producers, including Zimplats, Mimosa, and Unki Mines, are expected to maintain full-capacity operations, ensuring a steady supply even amid challenging market conditions.
Driving this growth are significant investments aimed at sustaining and enhancing production. Zimplats is leading the way with a US$190 million investment to refurbish its Base Metal Refinery (BMR) and complete several projects between 2025 and 2028. This initiative is expected to strengthen local refining capacity and improve long-term profitability.
Meanwhile, Mimosa Mining Company is allocating US$2.1 million toward developing tailings storage facilities, extending the mine’s operational lifespan.
Unki Mines is also focusing on expansion and sustainability, investing US$500,000 in open-pit mining and US$200,000 in solar energy projects, which are projected to increase production by 1%.
However, despite these investments, the sector continues to face financial pressures due to weak metal prices.
While some companies anticipate a price rebound, cash flow constraints have forced them to put large expansion projects on hold. Nonetheless, the commitment to ongoing development reflects confidence in the long-term viability of Zimbabwe’s platinum industry.
Market analysts predict a continued weak recovery in PGM prices in 2025, with platinum expected to average $965 per ounce, up slightly from $955 per ounce in 2024. Palladium prices are forecasted to average $985 per ounce, compared to $970 per ounce the previous year. This sluggish price movement is largely attributed to an oversupply of PGMs and declining demand, particularly from the automotive sector, which has traditionally been a key consumer.
Adding to the uncertainty are global concerns about the long-term demand for PGMs as the world accelerates its shift toward renewable energy. While platinum has been considered a substitute for palladium in autocatalysts, the narrowing price gap between the two metals has limited its impact on overall demand. This trend raises further questions about the future role of PGMs in industrial applications.
Despite these market challenges, Zimbabwe’s platinum sector remains resilient. Steady production growth and strategic investments are positioning the industry for long-term stability. While weak prices may slow down large-scale expansions, ongoing development projects and the country’s abundant platinum reserves provide a strong foundation for sustained growth in the years ahead.
