eBusiness Weekly
Tapiwanashe Mangwiro
Zimbabwe platinum production is poised to hit 502 000 ounces (oz) in 2023, said the World Platinum Investment Council (WPIC) in its latest quarterly global production report.
The production represents a 5 percent growth in production from the anticipated 453 000 oz in 2022 which was down from the 478 000 oz produced in 2021.
However, Zimbabwe’s platinum output rose 2 percent to 118 000 ounces in the third quarter ended September 30, 2022 from 116 000 ounces in the comparative period, the latest data shows.
The southern African country has the world’s second-largest Platinum Group Metals resource, after South Africa, on the Great Dyke. It has three platinum-producing mines, namely, Zimplats, Mimosa and Unki.
The revised growth comes as South Africa’s Tharisa plans to spend US$391 million on developing a 194 000 ounce per year platinum mine in Zimbabwe. The Karo mine production plan had been upgraded to 194 000 ounces of PGMs per year, from 150 000 ounces initially.
Analyst Tafara Mtutu said; “The projection is quite feasible if we look at the efforts that have been put into the industry in the past 12-18 months. Some have deepened their mines, while others have extended their refineries, making it quite quick to get revenue and reinvest it.”
“Zimbabwe production edged up 2 percent as increased output from the Unki concentrator debottlenecking project offset lower volumes from Zimplats, resulting from a scheduled furnace relining,” said WIPC.
At 118 000 ounces in Q3 2022, the country’s platinum production was down 5 percent from the 124 000 ounces realised in Q2 2022.
For the first six months of 2022, platinum production in Zimbabwe declined 1 percent to 241 000 ounces from 243 000 ounces in the same period in 2021.
“While underlying mine capacity has increased in Zimbabwe, the processing of a backlog of semi-finished inventory through South African refineries last year means refined output is expected to remain essentially unchanged.”
2021 was a record year for platinum industrial demand, and while 2022 brought a contraction of 14 percent, mining expert Emmanuel Nhende expects 2023 to be another period of record setting buying from this segment.
“There are quite a number of capacity additions in the chemical and glass subsectors for industrial demand, which are helping drive 2023 to being the second strongest year for industrial demand on record,” Nhende said.
He went on to point out that Chinese platinum imports have ballooned in recent years, similar to palladium in the 2010s.
“China’s appetite for platinum has just skyrocketed since the middle of 2021,” he added. “And China has been importing significant amounts of platinum well in excess of identified demand about 1,2 million ounces since the beginning of last year.”
Refined platinum production decreased 11 percent year-over-year to 1 401 000oz as a result of lower South African production, countering gains elsewhere. The output from South Africa, the leading producer in the world, dropped to 986 000oz, an 18 percent decline from the previous year.
The report states that a decrease was predicted as a result of planned maintenance at the Polokwane smelter of Anglo-American Platinum.
“While output from the entire production chain (mining, concentrating, smelting and refining) was affected, smelter availability was most impacted, with mining companies reporting some build-up of semi-processed inventory,” the report reveals.
Russian manufacturing continues to meet targeted volumes despite logistical limitations and purchasing difficulties, with full-year production expected to climb 4 percent yearly to 678 000oz. According to the report, North America had a difficult year due to labour shortages, a strike at Glencore’s facilities, and a flood at the Stillwater mine that reduced output.
Zimbabwe is envisioning a US$12 billion mining industry by 2023.
Of the US$12 billion, gold, platinum, and diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively.
Chrome, iron ore and carbon steel will contribute US$1 billion while coal and hydrocarbons will do the same. Lithium contributes US$500 000 while other minerals will constitute US$1,5 billion.
The mining industry’s optimism for 2022 is still supported by current capacity expansion efforts and the forecast for commodity prices. The greatest challenges to the sector’s future growth are still power outages, capital restrictions and legislative changes.
