News / National
Zimbabwe's mineral revenues decline despite volume surge
17 Apr 2025 at 07:34hrs | Views
Zimbabwe's mining sector delivered a mixed performance in the first quarter of 2025, with mineral export volumes registering notable growth, but overall revenues falling sharply. This is according to the latest report released by the Minerals Marketing Corporation of Zimbabwe (MMCZ), which attributed the decline in earnings to weakening platinum group metals (PGMs) prices and delays in processing agreements.
In the first three months of 2025, the country recorded mineral sales totaling 1 021 296 tonnes, which generated US$555.2 million in revenue. This represented a 16 percent increase in volumes compared to the same period in 2024. However, the value of exports declined by 27 percent, underscoring the sector's vulnerability to fluctuating global commodity prices and domestic production challenges.
The MMCZ attributed the growth in export volumes to higher output and shipments of several key minerals. Coal exports rose significantly, increasing by 63 percent year-on-year, while coke and chrome ore (lumpy) recorded growth of 58 percent and 53 percent respectively. Copper concentrate exports more than doubled, surging by 117 percent, while high carbon ferrochrome and scrap metal exports increased by 25 percent and 37 percent respectively. The introduction of steel exports also played a role in the improved volume performance.
Despite these gains, the sector's revenue performance was hampered by a steep decline in the sales of PGMs, which are traditionally among Zimbabwe's top foreign currency earners. The MMCZ said the decrease was largely due to delays in the implementation of the toll processing agreement between Mimosa and ZIMPLATS. The situation was further exacerbated by a production shortfall at Unki Mine, which experienced power supply disruptions during the third quarter of 2024. These setbacks affected the export of PGM matte, a key contributor to the country's mining revenue.
Nonetheless, PGMs matte remained the highest revenue earner for the quarter, bringing in US$208.4 million from the sale of 4 762 ounces. It was followed by spodumene, which generated US$83.5 million from 244 414 tonnes. High carbon ferrochrome exports earned US$73.4 million from 98 129 tonnes, while coke exports brought in US$51.8 million from 264 331 tonnes. PGMs concentrates, despite the challenges, generated US$48.7 million from 15 250.8 tonnes.
Commenting on the sector's performance, Dr Cephas Jumburu, a mineral economist at the University of Zimbabwe, said the volume increases were a sign of resilience, but the sharp revenue decline exposed the mining sector's susceptibility to global market trends. He emphasised the need for Zimbabwe to prioritise value addition and diversification in order to insulate itself from external shocks.
Independent economist Tinevimbo Shava noted that the delayed implementation of the Mimosa-ZIMPLATS toll processing deal had significantly affected PGM revenues. He stressed the importance of addressing such operational inefficiencies to strengthen the sector's output and fiscal contribution.
Despite the current challenges, Zimbabwe's platinum production is forecast to remain relatively stable in 2025, with output projected at 512 000 ounces compared to 514 000 ounces in 2024. This outlook is significant given the anticipated global platinum supply deficit. According to the World Platinum Investment Council (WPIC), the international market will experience its third consecutive annual shortfall, with a deficit estimated at 848 000 ounces in 2025, driven by reduced recycling volumes and constrained production, particularly in South Africa.
Economist Sarah Chikore underscored the critical role of infrastructure in supporting mining operations. She said the power supply issues that affected Unki Mine were not only detrimental to production but also eroded investor confidence. She called for urgent investments in energy and other key infrastructure to enhance the sector's productivity and appeal to international capital.
While Zimbabwe's mining sector continues to demonstrate resilience through increased export volumes, the decline in revenue highlights the urgent need for strategic reforms. Addressing operational bottlenecks, improving energy supply, and advancing value addition remain essential for the country to fully leverage its vast mineral wealth and achieve the goals outlined in the National Development Strategy 1 (NDS1).
In the first three months of 2025, the country recorded mineral sales totaling 1 021 296 tonnes, which generated US$555.2 million in revenue. This represented a 16 percent increase in volumes compared to the same period in 2024. However, the value of exports declined by 27 percent, underscoring the sector's vulnerability to fluctuating global commodity prices and domestic production challenges.
The MMCZ attributed the growth in export volumes to higher output and shipments of several key minerals. Coal exports rose significantly, increasing by 63 percent year-on-year, while coke and chrome ore (lumpy) recorded growth of 58 percent and 53 percent respectively. Copper concentrate exports more than doubled, surging by 117 percent, while high carbon ferrochrome and scrap metal exports increased by 25 percent and 37 percent respectively. The introduction of steel exports also played a role in the improved volume performance.
Despite these gains, the sector's revenue performance was hampered by a steep decline in the sales of PGMs, which are traditionally among Zimbabwe's top foreign currency earners. The MMCZ said the decrease was largely due to delays in the implementation of the toll processing agreement between Mimosa and ZIMPLATS. The situation was further exacerbated by a production shortfall at Unki Mine, which experienced power supply disruptions during the third quarter of 2024. These setbacks affected the export of PGM matte, a key contributor to the country's mining revenue.
Nonetheless, PGMs matte remained the highest revenue earner for the quarter, bringing in US$208.4 million from the sale of 4 762 ounces. It was followed by spodumene, which generated US$83.5 million from 244 414 tonnes. High carbon ferrochrome exports earned US$73.4 million from 98 129 tonnes, while coke exports brought in US$51.8 million from 264 331 tonnes. PGMs concentrates, despite the challenges, generated US$48.7 million from 15 250.8 tonnes.
Independent economist Tinevimbo Shava noted that the delayed implementation of the Mimosa-ZIMPLATS toll processing deal had significantly affected PGM revenues. He stressed the importance of addressing such operational inefficiencies to strengthen the sector's output and fiscal contribution.
Despite the current challenges, Zimbabwe's platinum production is forecast to remain relatively stable in 2025, with output projected at 512 000 ounces compared to 514 000 ounces in 2024. This outlook is significant given the anticipated global platinum supply deficit. According to the World Platinum Investment Council (WPIC), the international market will experience its third consecutive annual shortfall, with a deficit estimated at 848 000 ounces in 2025, driven by reduced recycling volumes and constrained production, particularly in South Africa.
Economist Sarah Chikore underscored the critical role of infrastructure in supporting mining operations. She said the power supply issues that affected Unki Mine were not only detrimental to production but also eroded investor confidence. She called for urgent investments in energy and other key infrastructure to enhance the sector's productivity and appeal to international capital.
While Zimbabwe's mining sector continues to demonstrate resilience through increased export volumes, the decline in revenue highlights the urgent need for strategic reforms. Addressing operational bottlenecks, improving energy supply, and advancing value addition remain essential for the country to fully leverage its vast mineral wealth and achieve the goals outlined in the National Development Strategy 1 (NDS1).
Source - The Herald
