Zimbabwe platinum output depressed

Published: 07 August 2013

Zimbabwe's platinum production was depressed in the half-year to June 2013, increasing by a marginal two percent to 6,6 tonnes from 6,4 tonnes in prior comparable period.

According to the latest Chamber of Mines of Zimbabwe (CoMZ) data, the country - sitting on the second largest known platinum reserves in the world after South Africa - realised $292 million in revenue from the white metal during the period under review, up from $285 million.

Apart from the vast platinum reserves, Zimbabwe also has significant deposits of gold, nickel, diamonds and coal among other key minerals.

This comes as economic experts say the country's huge platinum reserves may raise hopes in the mining sector’s contribution to the stuttering economy, despite being currently saddled with uncertainty following 89-year-old President Robert Mugabe's election victory.

While Zimbabwe's mining sector is currently growing steadily, the broader economy is now on stagnation mode after recovering briefly from its economic depression a few years ago when inflation was at 231 million percent.

Overall, CoMZ's data indicated that the mining sector's revenue inflows dipped 18 percent to $930 million compared with $1,1 billion recorded in previous comparable period.

During the half year, total gold production volumes plunged by 22 percent to 6,7 tonnes from 8,6 tonnes in prior period.

High production costs, the lack of long-term capital and depressed global metal prices are threatening viability of the mining industry.

In the period under review, the yellow metal's revenues were $326 million compared to $449 million recorded in previous period.

This development comes as mining companies in Zimbabwe remitted $81,1 million to government in royalties during the six months to June 2013.

The sector also continued to lead in export earnings, rising to $2 billion in 2012, from $1,8 billion in 2011, with major drivers of this growth in export earnings being diamonds, platinum and gold.

Zimbabwe is in the process of developing a mineral policy that seeks to, among other things, address challenges affecting the sector and explore ways of attracting investment to the sector.

To date, the Mines and Mining Development ministry has held consultations with stakeholders countrywide to solicit views and enhance stakeholder buy-in on the draft policy.
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