Harare – Zimbabwe’s platinum production decreased by 2 percent in 2018 to 470 000 ounces (koz) from 480koz achieved in 2017 which was in line with the rest of the world where total platinum supply fell marginally to 8,010koz, a new report by the World Platinum Investment Council (WPIC) has shown.
According to the report, refined production slipped 1 percent to 6,085koz following lower output from Zimbabwe, Russia and North America.
Production in Russia decreased by 6 percent from 720koz in 2017 to 675koz in 2018, while production in North America retreated 1 percent to 360koz from 365koz recorded in 2017.
Expansion in the US is expected to lift North American supply by 50koz to 410koz. Output from Zimbabwe and Russia is expected to remain stable at 470koz and 675koz respectively.
Likewise, global platinum demand dropped as a result of declines in automotive, jewellery and investment demand.
“Global platinum demand dropped by 5 percent last year to 7,365koz as declines in automotive, jewellery and investment demand outweighed improved industrial demand,” said WPIC.
“Automotive demand fell by 7 percent to 3,100koz owing to the ongoing contraction in the Western European diesel market. Jewellery consumption was down 4 percent to 2,355koz as Chinese jewellery demand continued to fall and this out-weighed gains in other regions.”
Platinum demand has been under pressure since 2015 following the Volkswagen diesel-engine emissions cheating scandal in the US. WPIC said automotive demand is projected to fall at a far slower rate than in 2018, declining 3 percent year-on-year to 3m ounces in 2019, compared to a 7 percent decline in 2018.
Zimbabwe has the world’s second-largest platinum reserves after South Africa, as well as large deposits of lithium, coal, gold, diamonds, chrome and nickel. A lot of the resources are at shallower depths compared with South Africa where the easily accessible ore has been mined out.
Among the bigger players involved in platinum mining in Zimbabwe is Anglo American Platinum Ltd which owns the Unki mine and Impala Platinum Holdings Ltd which owns Zimplats and Mimosa.
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