Zimbabwe’s platinum producers have warned that delays in the payment of export proceeds and rising operating costs are threatening investment and expansion plans in the country’s strategically important platinum sector.
Speaking at the Platinum Group Metals Indaba in Victoria Falls, Mimosa Managing Director Fungai Makoni, presenting remarks on behalf of Platinum Producers Association Chairman Alex Mhembere, said although the medium-term outlook for platinum group metals remains positive, structural challenges continue to weigh heavily on the industry.
Makoni said platinum producers are increasingly facing viability challenges due to delayed payments for the surrender portion of export proceeds, high electricity tariffs, capital shortages and fragile power supplies.
Makoni revealed that platinum producers were owed more than US$228 million in outstanding surrender proceeds as of May this year, a situation he said has created severe cash flow constraints and delayed the implementation of major capital projects.
Despite these challenges, Makoni said the sector remains optimistic, with Chamber of Mines projections indicating that PGM output could grow by an average of five percent in 2026, while exports are expected to reach US$2 billion.
Zimbabwe hosts the world’s third-largest platinum group metals reserves after South Africa and Russia, with resources concentrated along the mineral-rich Great Dyke.
Makoni said ongoing expansion projects at existing producers, coupled with new entrants into the sector, position Zimbabwe for significant long-term growth.
Meanwhile, the industry says it remains committed to Government’s beneficiation agenda, with producers expanding local smelting capacity and working towards increased in-country processing of platinum concentrates.
However, producers are calling for a more competitive operating environment, including reliable electricity supplies, timely payment of export proceeds and lower production costs to unlock the sector’s full potential.
