ZIMBABWE’s platinum production surpassed the 500 000 ounces milestone for the first time in 2023 owing to operational improvements and project developments, the World Platinum Investment Council (WPIC) has revealed.
In its quarterly update, WPIC said platinum production increased six percent to 507 kilo ounces (koz) last year compared to 480 koz ounces recorded in 2022 as “The country benefits from operational stability, mechanised mining methods, resulting in fewer safety stoppages, and stable workplace relations”.
“The realisation of volumes from the commissioning of the third concentrator at Zimplats and the Unki concentrator debottlenecking project contributed to the record production.”
Production surged by an estimated 8 percent year-on-year in the fourth quarter of 2023, hitting a record high of 133 koz as all three major producers in Zimbabwe saw year-on-year growth, with Unki leading the way through increased throughput and head grade.
“Zimbabwe’s production has continued its steady rise, surpassing the 500 koz milestone for the first time. The country benefits from operational stability and mechanised mining methods, which result in fewer safety stoppages and stable workplace relations.”
The WPIC anticipates that Zimbabwe’s production will maintain its long-term stability, with minimal changes expected.
Meanwhile, the platinum market recorded a deficit of 878 koz in 2023, the largest within the WPIC’s data series. This market deficit is expected to persist through 2024, at 418 koz, with several ongoing market themes continuing.
The total platinum supply decreased by 2 percent in 2023 and is forecast to decrease by another 1 percent in 2024, leaving the 2024 supply 6 percent below the average annual supply over the previous five years.
“Supply risks are highly likely to remain in focus during 2024. The significant decline in the PGM basket price has eroded profitability at a number of operations, and all of the major producers have announced plans to restructure their operations, the full implications of which are not yet clear,” the council warned.
It highlighted that the recycling supply was the weakest during the quarter, at 25 percent below the preceding five-year average. Although a 7 percent recovery is expected in 2024, there are a number of risks to that outlook.- Staff Reporter
On the other hand, platinum demand remains robust, although total demand is expected to decline by 6 percent in 2024, following a record year for industrial demand in 2023. The WPIC attributed the decline to a weaker investment outlook for bar and coin in the US and Japan and expected ETF disinvestment due to the higher-for-longer interest rate envir
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