By ETimes
HARARE – ZIMBABWE’S platinum industry, long a steady contributor to global output, faces challenges that affect its competitiveness compared to dominant producers like South Africa.
In Q3 2024, Zimbabwe’s refined production held steady at 126 koz, unchanged year-on-year, and reflecting its 2024 forecast of 504 koz, a minor 1% decline from 2023. This consistency, however, belies underlying operational hurdles.
Zimbabwe’s year-to-date platinum production in 2024 has demonstrated stability but limited growth, with a forecast of 504 koz for the full year, marking a slight 1% decline compared to 2023.
The commissioning of Zimplats’ expanded smelter illustrates the country’s strategic aim to enhance value addition within its borders. However, this progress was partially offset by a buildup of semi-finished inventory, reducing immediate output. Compared to South Africa, which increased its quarterly production by 9% to 1,073 koz owing to better energy stability and pipeline stock releases, Zimbabwe’s gains appear muted.
South Africa’s dominance stems from its ability to manage challenges more effectively, including load shedding and operational disruptions. The improved smelter availability and proactive inventory management bolstered its 2024 production outlook by 1% to 4,000 koz, significantly outpacing Zimbabwe.
Zimbabwe’s production is also constrained by limited downstream investments and a reliance on global players like Zimplats. South Africa, by contrast, benefits from a diversified base of producers, well-established infrastructure, and a more substantial capacity for refining and recycling platinum group metals (PGMs). In 2024, South Africa’s contribution accounted for over 70% of regional platinum output.
Both nations contend with market pressures such as low PGM basket prices, which discourage new investments. Yet, Zimbabwe’s industry is further hindered by political and regulatory uncertainties that exacerbate operational inefficiencies, making it less adaptable to market fluctuations compared to its southern neighbor.
Zimbabwe’s modest growth trajectory underscores the need for structural reforms, including enhanced infrastructure, reduced regulatory bottlenecks, and more aggressive investment in processing capacity to bridge the gap with South Africa’s formidable lead. Without these measures, its role in the global PGM market risks stagnation amid intensifying competition.
While Zimbabwe remains a key player in the global platinum market, its constrained production growth underscores the need for operational enhancements and strategic investments to remain competitive.