- Zimbabwe’s raw concentrate exports dropping 52% in volume (to 73,506 mt) and 44% in value (to US$306 million) as producers increasingly convert concentrates into higher-value PGM matte
- Matte exports surged 71% in value to US$1.5 billion
- The industry is dominated by three main players: Zimplats (Implats subsidiary) with the largest smelting capacity (~380,000 tpa concentrate after expansion), Mimosa Mining (Implats/Sibanye JV), and Unki Mine
- While the beneficiation policy is economically logical, the current high tax burden, and bureaucratic delays risk deterring new investment and expansion
Harare- Zimbabwe's platinum group metals (PGM) sector has seen a significant structural shift toward higher-value beneficiation in 2025, marked by a deliberate reduction in raw concentrate exports and a strong rise in PGM matte shipments.
According to the Minerals Marketing Corporation of Zimbabwe (MMCZ), PGM concentrate exports declined sharply, with volumes falling 52% to 73,506 metric tonnes and value dropping 44% to US$306 million, compared to 153,957 metric tonnes valued at US$549 million in 2024.
In contrast, PGM matte exports surged 71% in value to US$1.5 billion from 37,194 metric tonnes. This performance was supported by both higher export volumes and firmer international PGM prices.
The shift reflects a successful policy push to move up the value chain from low-value raw concentrates to smelted matte, a higher-value intermediate product that captures more economic rent domestically.
The three dominant players in Zimbabwe’s PGM industry are Zimplats, Mimosa Mining Company, and Unki Mine. Zimplats (100% owned by South Africa’s Impala Platinum Holdings – Implats) remains the largest producer and the clear leader in beneficiation.
Operating the Ngezi, Bimha, and Ngwarati underground mines on the Great Dyke, Zimplats commissioned a major smelter expansion that tripled its processing capacity to approximately 380,000 tonnes of concentrate per year. The company is now toll-processing material from smaller producers and exporting significantly more matte.
Mimosa, a 50:50 joint venture between Implats and Sibanye-Stillwater, operates the Mimosa mine near Zvishavane and has also increased matte output through toll-smelting arrangements with Zimplats. Unki Mine, wholly owned by Valtera Platinum, is the third major player, producing concentrate that is increasingly being smelted locally.
The tax structure in Zimbabwe remains one of the heaviest in the global PGM industry. Royalty rates stand at 5% on platinum, (an additional 5% tax imposed on the export of unbeneficiated (unrefined) platinum to encourage local processing, while a portion of royalties may be required to be paid in kindand) up to 10% on other PGMs when priced at the London Metal Exchange or MMCZ reference price.
An additional export tax applies to unbeneficiated minerals at 5%, initially planned to be raised up to 7%, alongside the standard corporate income tax of 25%, 15% withholding tax on dividends, and various levies including the 2% intermediated money transfer tax and carbon tax.
When combined with capital gains tax, property taxes, and licensing fees, the effective tax burden on many operations can exceed 50% of profits and these high rates, together with the mandatory sale of foreign currency to the Reserve Bank at the official rate, discourage fresh investment and expansion, especially for mid-tier and junior miners.
Bureaucratic hurdles further compound the problem. Prolonged environmental impact assessment approvals, frequent policy revisions, lengthy export permit processes create delays and uncertainty that raise operational costs.
PGM matte represents a critical step up the value chain. Unlike raw concentrate (which contains only 40–120 grams of PGMs per tonne), matte is produced by smelting concentrates and typically contains 1,000–2,500 grams of PGMs per tonne, along with base metals.
This intermediate product commands significantly higher prices per tonne and allows Zimbabwe to retain more value domestically through smelting and associated jobs, energy consumption, and technical skills development. The 71% increase in matte export value in 2025 demonstrates that the beneficiation strategy is working in terms of revenue capture, even as raw concentrate volumes decline.
Current smelting capacity is still concentrated in a few hands. Zimplats’ expanded smelter is the largest facility in the country with an annual capacity of around 380,000 tonnes of concentrate. Mimosa and Unki do not operate their own large smelters and instead rely on toll-processing arrangements with Zimplats or occasional exports of concentrate.
This concentration creates a bottleneck and gives Zimplats significant negotiating power. To scale matte production further, Zimbabwe will need additional smelting capacity, either through new greenfield projects or expansion of existing facilities.
To accelerate matte and refined PGM exports, the government can introduce targeted incentives. These could include tax rebates or zero-rating of VAT on matte and refined PGM exports, accelerated capital allowances (100% depreciation) for new smelters and refineries, power subsidies or guaranteed electricity supply for processing plants, and streamlined one-stop licensing for beneficiation projects.
Long-term offtake agreements with international refiners (guaranteeing market access) and performance-based royalty reductions for companies achieving higher local processing levels would also encourage investment.
Establishing a dedicated PGM beneficiation fund to co-finance infrastructure (power, roads, water) would further de-risk projects.
Zimbabwe can draw valuable lessons from leading PGM nations. South Africa has used the Mineral and Petroleum Resources Development Act to enforce minimum beneficiation thresholds, tax incentives for downstream industries, and Black Economic Empowerment equity requirements.
Russia (via Norilsk Nickel) demonstrates the benefits of vertical integration and strong state oversight to ensure most value addition occurs domestically. Botswana offers a good model for fiscal stability and long-term investment incentives in diamond beneficiation that could be adapted for PGMs.
The outlook for 2026 is cautiously optimistic. Global PGM prices are expected to remain elevated due to persistent supply deficits, strong rhodium and platinum demand from autocatalysts, growth in hydrogen technologies (fuel cells and electrolysers), and jewellery recovery.
Zimbabwe’s own PGM production is projected to grow 3–5% as Zimplats, Mimosa, and Unki ramp up output and new projects such as Karo Platinum begin contributing.
However, sustained progress will depend on resolving chronic power shortages, reducing bureaucratic delays, stabilising the fiscal regime, and attracting the large capital investments needed to expand smelting and move further downstream into refining and autocatalyst manufacturing.
Therefore, the sharp rise in matte exports in 2025 marks genuine progress toward value addition, but Zimbabwe must balance its revenue-maximising tax approach with investment-friendly incentives and streamlined regulations. Emulating these best practices from South Africa and Russia while addressing its own power, bureaucratic, and fiscal challenges, will make the country to transform its PGM sector from a raw exporter into a competitive regional value-added hub, creating jobs, skills, and higher foreign currency retention in the process.
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