ZIMBABWE’S platinum output increased by 2% to 121 000 ounces (oz) in the first quarter of this year compared to the same period last year, the World Platinum Investment Council (WPIC) has said.

Last year in the first quarter, stood at 118 000oz.

Total output for 2022 is seen at 465 000oz, down 4% compared to what was achieved last year.

The southern African country holds the world’s third largest proven platinum reserves after South Africa and Russia.

Output from Zimbabwe has an impact on global output and pricing trends.

The modest increase in platinum output comes at a time the government has output scrapped the 5% levy on raw platinum exports that was introduced back in 2020.

The tax was meant to encourage the various mining companies in the platinum sector to invest in domestic value addition services in Zimbabwe.

Zimplats, Unki and Mimosa ship out semi-processed matte for final refining in South Africa.

The lifting of the levy, which comes in the wake of other measures by the treasury allowing miners to pay royalties and a portion of their electricity bills in local currency, is expected to aid the challenges platinum group metal miners have been facing.

In its first quarter report, WPIC said Russia’s invasion of Ukraine at the end of February sent shockwaves through the markets.

The report said global refined platinum production in the period under review declined 13% year-on-year to 1 279 000oz, primarily on lower output from South Africa.

South African production fell 16% to 167 000oz year-on-year during the review period. Among factors behind the decline in South Africa, maintenance schedules constrained processing availability in the quarter under review as Impala Platinum (Implats) , one of the biggest producers, undertook a programme to rebuild its number three furnace.

“Operations faced headwinds during the first quarter of 2022 as Covid-19 and geopolitical events stressed supply chains, impacting equipment deliveries and disrupting mine output. Safety-related stoppages also continued to weigh on output. Production at Mogalakwena, Anglo American Platinum’s flagship mine (in South Africa), was curtailed by heavy rainfall in the period,” the report said.

Russian output declined year-on-year.

The report said other regions remained largely flat year-on-year.

Total demand in the first quarter declined 26% year-on-year to 1 528 000oz. Key contributors to this performance were exchange stock outflows. Industrial demand was lower, said the report. Low demand was also the result of jewellery demand, which heavily depends on China, but was affected by Covid-19 restrictions. 11%

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