Platinum output set to hit all-time high
Zimbabwe’s 2023 platinum production is set to reach an all-time high of 502 koz, representing a five percent year-on-year increase largely driven by expansion at Zimplats, the World Platinum Investment Council (WPIC) has said.
Zimbabwe is the world’s third-largest producer of platinum after Russia and South Africa and Zimplats, Unki, and Mimosa are the country’s major producers of platinum.
The platinum group metals (PGMs) industry is among the minerals expected to contribute to Zimbabwe’s target to grow the mining sector to $12 billion by the end of the current year.
The report notes that Zimbabwe’s platinum production rose by two percent in the second quarter of 2023 to a record 126 000 ounces.
“Zimbabwe supply edged two percent higher year-on-year to 126 koz, its highest since the fourth quarter of 2021. This was the result of higher output from Zimplats as additional milled ore volumes from the commissioning of a concentrator were realised,” WPIC said in its second-quarter report.
It added that despite the headwinds of load shedding across the country’s national grid, mine production is expected to hit an all-time high of 502 koz in 2023.
“Despite the headwinds of load shedding across the Zimbabwean national grid, mine production is expected to hit an all-time high of 502 koz in 2023, a five percent (+22 koz) year-on-year increase.
“This growth reflects the expansion of capacity at Zimplats. However, it is important to note that since Zimbabwean-mined platinum undergoes downstream processing in South Africa, the overall outcome is contingent upon the performance of that country.”
Globally, WPIC said despite the economic challenges facing the world, it believes that the platinum demand outlook for 2023 remains well protected against downside risks.
It said automotive demand continues to be driven more by substitution and higher loadings in the heavy-duty and non-road segments than growth in vehicle production, with a 13 percent year-on-year increase in automotive demand for platinum, there is demand growth despite current or even a further erosion of consumer demand for new vehicles on economic grounds.
Similarly, confidence levels of industrial demand growth are increasing.
“Since we are effectively three-quarters through the year, the risk of the commissioning of new plants being postponed is narrowing, with platinum demand effectively locked-in for 2023.
“If economic uncertainties and relatively high interest rates do impact new industrial capacity additions, it is more likely to be in 2024 and thereafter.”
Meanwhile, in its trading update for the quarter to June 30, 2023, its Zimplats says the combination of improved milling, better grades and recovery resulted in a nine percent quarterly increase in six-element (6E) metal in final product volumes.
The six elements the company produces are platinum, palladium, rhodium, gold, ruthenium and iridium.
Platinum is Zimbabwe’s second largest mineral export earner after gold.
Between them, platinum and gold generate more than 50 percent of mineral exports, which account for well over three-quarters of the country’s total shipments annually.
Zimplats commissioned the third concentrator at Ngezi in September 2022 and increased milling capacity resulted in a 10 percent increase in milled throughput from the prior comparable quarter.
During the quarter under review, mined volumes increased by four percent from the prior comparable quarter which was negatively impacted by poor equipment availability at Mupfuti Mine.
Ore milled increased by 3 percent from the prior quarter to 1,94 million tonnes and benefited from the increase in operating days and improved availability of power during the period.-chronicle