Story by Davison Vandira
Zimbabwe’s platinum mining industry is set to benefit from the anticipated rise in international prices for the commodity, owing to an expected production deficit across the globe.
The World Platinum Investment Council has revealed that there will be a global platinum output deficit of over 980 000 ounces this year.
The deficit, however, presents an opportunity for the local platinum mining industry to ramp up production and sustain global demand.
With Zimbabwe among the top five platinum-producing countries across the globe, the anticipated deficit which will however translate into a rise in prices is also expected to increase profitability.
“This is a positive headache for Zimbabwe as it is a primary producer of platinum and this will act as an incentive to ramp production at already established mines. It also creates room for other greenfield projects as the demand continues to rise worldwide,” said an economist, Dr Lyman Mlambo.
Another economist, Christopher Mugaga added, “Unmet demand of commodity prices at the international market pushes prices of such products upwards. For Zimbabwe, this will be a good thing as it will generate foreign currency to the economy as well as the creation of job opportunities.”
The news comes at a time the country’s platinum producers, Zimplats, Mimosa and Unki are already rolling out expansion projects that will see them increasing production.