CLOUDINE MATOLA
The mining industry in Zimbabwe is in dire straits, with the platinum group metals (PGM) in particular facing a battle for survival if the current price downturn continues, Business Times can report.
Among the few platinum miners operating in Zimbabwe are Mimosa Mining Company, Unki Platinum Mining Company, and Zimplats, the largest platinum miner in Zimbabwe.
Others are currently in the development stages, such as the Karo Mining House in Selous, Mashonaland West Province.
Business executives beleive the situation is dire and expect production cuts to become more pronounced in order to relieve pressure on margins.
The forecasted weak car production for internal combustion engines this year largely contributes to its slumping prices. Prices are also under pressure from the expanding manufacturing of electric cars, which are dependent on substitutes for platinum metal.
The current price is US$915.19 per ounce prom a peak of US$960 per ounce in May last year and is forecast to fall slightly on an annual average basis this year.
Analysts have stated that a fall towards US$900 per ounce is still feasible throughout the year.
They added that if prices do breach US$900 per ounce, a sharp decrease to US$880 per ounce cannot be ruled out. Prices may fall considerably lower than that.
“In general, because of the low pricing of commodities, this has been the hardest time for miners. The pricing and revenue for the minerals were recorded at low levels,” the Chamber of Mines Zimbabwe said yesterday.
This year, the Chamber foresees an even worse downturn.
As a result of the price decline, several platinum miners have postponed projects.
For instance, the scheduled commissioning of Karo Mining Holdings (KMH), a listed platinum miner, in Mhondoro-Ngezi, Mashonaland West Province, has been postponed. This is mostly due to the low pricing of the metal on the global market.
Construction of the mine started two years ago, and the commissioning of the project was scheduled for July this year.
When complete, Karo mine is expected to produce up to 194 000 ounces of PGMs per year.
This would make it Zimbabwe’s third largest platinum miner after Zimplats and Unki Mine.
“The PGMs’ price environment necessitated a review of the commissioning timeline. First ore in the mill is now planned for June 2025 whilst the project workstreams have been divided into smaller commitments to ensure continued development aligned with funding availability, “KMH said.
Implats, the parent company of Zimplats, recently announced that it will cut spending on current projects including those being undertaken in Zimbabwe.
“Planned elevated levels of spend across the portfolio will be adjusted to reflect the prevailing current reality of compressed industry margins,” Impala CEO Nico Muller said.
Mimosa Mining Company, has also abandoned its plans for an independent refinery at its Zvishavane premises citing economic feasibility concerns.
Recently, Mimosa’s general manager, Stephen Ndiyamba said: “We are abandoning plans for an independent refinery.”
