Mimosa Mining Company, Zimbabwe’s oldest platinum group metals producer, has reported a 4% increase in its six elements (6E) in-concentrate volume to 255,000 ounces for the full year ending June 30, 2024. This growth was driven by plant optimization efforts, which boosted milling volume and recoveries. In 2021, Mimosa invested $40 million to expand its mine life and capacity, including the North Hill project, which extended its life-of-mine by approximately nine years.
The company’s 6E production includes platinum, palladium, rhodium, ruthenium, iridium, and gold. According to its co-owner, Impala Platinum Holdings (Implats), tonnes milled rose by 5.8% to 2.894 million tonnes, while the 6E grade declined by 4.2% to 3.61 grams per tonne. Concentrate receipts from third parties dropped by 34% due to the conclusion of two contracts in the third quarter of FY2023.
Mimosa mine, operating on the southern portion of the Zimbabwean Great Dyke, is one of the lowest-cost primary producers in the industry. Implats acquired a 35% stake in Mimosa Mining Company in 2001, expanding the mine’s production capacity from 15,000 to approximately 70,000 ounces of platinum per annum.
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Zimbabwe holds the second-largest platinum deposits globally, after South Africa. Despite a supply deficit of 851,000 ounces in 2023, platinum prices faced pressure due to concerns about reduced demand from the growing market share of PGM-free, battery-powered electric vehicles. The World Platinum Investment Council forecasts a full-year deficit of 476,000 ounces for 2024.
The local mining sector contributes an estimated 13% to Zimbabwe’s GDP, with subdued growth of 4.8% in 2023 due to inconsistent power supply and depressed commodity prices. However, mineral output is expected to grow by 7.6% in 2024 as mining companies increase production to compensate for 2023’s revenue losses. Nevertheless, mineral revenues are projected to decline by 10% due to depressed global metal prices.
