The Platinum Group Metals (PGMs) industry continued to be a vital pillar of Zimbabwe’s economy, contributing US$2.1 billion in export revenue last year.
Despite facing challenges from depressed global market prices, the sector’s performance underscored its significance, according to Mines and Mining Development Minister Winston Chitando.
PGMs are Zimbabwe’s second largest export after gold, with an anticipated revenue of US$3 billion for 2023. Combined, platinum and gold account for over half of the country’s export earnings, while the mining sector overall constitutes more than 75 percent of Zimbabwe’s export value.
Speaking at a PGMs symposium in Victoria Falls, Minister Chitando emphasized the sector’s crucial role in driving economic growth. Zimbabwe, holding the third largest PGMs deposits globally after South Africa and Russia, sees significant potential in this industry. Unlocking this potential involves addressing key issues such as promoting PGMs’ role in the energy transition, financing domestic refinery construction, and implementing a strategic import policy.
“The PGMs sector remains a vital contributor to our national economy, generating US$2.1 billion in 2023. PGMs account for approximately 25 percent of our national exports, underscoring their importance to our economic prosperity,” stated Minister Chitando.
He noted the dynamic and challenging landscape of PGMs mining, highlighting a substantial 40 percent decline in palladium prices. This price volatility reflects the complex interplay of global forces, including the geopolitical ramifications of the Russia-Ukraine conflict, which has significantly impacted the PGMs market.
Despite these challenges, Minister Chitando expressed confidence that local PGMs producers would continue to increase production to counter revenue losses from the downturn in commodity prices. Notably, Zimbabwe’s platinum production surged to 507,000 ounces last year, a six percent increase from 2022, driven by investments enhancing operational stability.