Zimbabwe's platinum output to fall 4% in 2025

Zimbabwe's platinum production is projected to decline by 4% to 491,000 ounces in 2025, falling short of last year's record output, according to a new report from the World Platinum Investment Council (WPIC).

The anticipated drop marks a reversal from 2024's all-time high and is attributed primarily to the exhaustion of semi-finished inventory that had previously bolstered production, as well as persistent power disruptions across the region.

"Zimbabwean platinum production is forecast to decline by 4% year on year to 491,000oz, down from 2024's all-time high," WPIC stated in its latest market outlook. "The drop reflects the depletion of semi-finished inventory that supported last year's output, as well as ongoing regional power disruptions."

Zimbabwe, which boasts the world's third-largest proven platinum reserves after South Africa and Russia, plays a key role in influencing global supply and pricing dynamics for the precious metal.

Production data from the first quarter of 2025 already reveals signs of strain, with output tumbling 13% to 115,000 ounces. WPIC attributes this drop to a combination of maintenance work, declining ore grades at Unki Mine, and operational challenges at Zimplats - Zimbabwe's largest platinum producer.

"Reduced availability of mechanised fleet and ongoing optimisation work at the furnace also weighed on output," the report noted.

With platinum prices currently under pressure, WPIC cautioned that profitability is becoming marginal for many mining operations across the globe, including those in Zimbabwe.

"At current price levels, profitability is marginal for many operations, increasing downside risks. Further declines in PGM or by-product prices, such as chrome, are likely to trigger additional restructuring and supply reductions," it said.

The WPIC report also highlights broader supply challenges within the global platinum market. South African mine production - which dominates global output - is forecast to decline by 6% to 3.87 million ounces in 2025. North America faces a steeper drop of 26%, with production expected to hit a three-decade low of 189,000 ounces due to operational restructuring at Sibanye Stillwater's US operations and declining by-product output from Canadian nickel miners.

Russian supply is projected to remain stable, inching up 1% to 686,000 ounces.

Overall, total global platinum supply for 2025 is expected to contract by 4% to 6.99 million ounces, with refined mine production falling 6%. However, secondary supply - mainly from recycled material - is expected to grow by 3%.

Global platinum demand is also forecast to drop by 4% to 7.97 million ounces, as geopolitical uncertainties, especially shifting US trade policies and their ripple effects across the global economy, continue to cloud the market outlook.

With demand outstripping supply for the second consecutive year, analysts say platinum prices could face increased volatility in 2025, underscoring the need for operational efficiency and strategic investment across producing countries - Zimbabwe included.