ZIMBABWE’S platinum miners said on Thursday they are owed more than US$228 million by the government, creating severe cash-flow pressures that have delayed capital projects and heightened concerns over the sector’s viability.
The funds relate to export proceeds retained under Zimbabwe’s foreign currency surrender requirements.
The concerns were raised by Platinum Producers Association chairperson Alexander Mhembere in a speech read on his behalf during the platinum group metals (PGM) producers’ indaba here.
“PGM producers have been experiencing significant delays in receiving payments for the surrender portion of export proceeds,” Mhembere’s speech read.
“These delays have created serious cash-flow constraints, resulting in the postponement of some capital projects.
“The Chamber (of Mines of Zimbabwe), through the PGM producers committee, has been engaging with the government to resolve this matter.”
Keep Reading
Under Zimbabwe’s retention policy, exporters are required to surrender 30% of their foreign currency earnings to authorities in exchange for the local unit, Zimbabwe Gold (ZiG), at the prevailing interbank rate.
Mhembere is the latest high-profile executive to raise concerns over the delayed payments.
The issue was also flagged earlier this year by several mining executives, including leaders of South African-owned platinum operations with interest in Zimbabwe, who said authorities were failing to honour commitments to settle outstanding balances.
According to Reuters, South Africa’s Valterra Platinum was owed about US$100 million in 2025 export proceeds, although partial repayments had begun.
The symposium was held alongside the Chamber of Mines’ Annual Mining Conference and Exhibition.
Mhembere said delayed payments for surrendered export proceeds had become one of the sector’s biggest challenges, alongside high operating costs, fragile power supplies and limited access to capital.
Despite ongoing engagements with authorities, miners say little progress has been made.
“These engagements have not yet resulted in significant improvements. The latest statistics show that PGM producers were owed more than US$228 million as of May 2026,” Mhembere said.
“We continue to call upon the government to facilitate payment of the outstanding balances and ensure that future surrender balances are paid on time to minimise operational disruptions and delays in project implementation.”
PGMs remain one of Zimbabwe’s most important mineral exports, generating substantial foreign currency earnings and supporting thousands of jobs.
Mhembere said the sector has contributed more than 40% of Zimbabwe’s mineral export earnings on average over the past five years.
“The size of the industry, measured by the value of output, increased significantly from around US$475 million in 2008 to a peak of US$2,2 billion in 2022 before declining to below US$2 billion over the past three years due to depressed PGM prices.”
The industry directly employs about 18 000 workers, representing nearly 30% of formal employment in the mining sector. Producers also contribute roughly 20% of their earnings to government through taxes and levies.
Beyond its direct economic contribution, the sector supports local enterprise development and community projects through procurement programmes, funding initiatives and corporate social investment schemes.
However, production remained under pressure in 2025 as operators grappled with viability challenges.
Platinum output declined to 17 882kg in 2025 from 18 911kg in 2024, while palladium production fell to 14 620kg from 15 603kg over the same period.
Despite lower output, export earnings increased to US$1,9 billion in 2025 from US$1,5 billion in 2024, largely due to stronger prices for key metals in the PGMs basket.
The chamber expects output to grow by an average of 5% in 2026, with export earnings projected to reach US$2 billion.
Mhembere warned that structural constraints continued to weigh heavily on the industry.
“The key challenges facing the PGM industry continue to be delays in payments for the surrender portion of export proceeds, high operating costs, fragile power supplies and capital shortages,” he said.
He noted that costs remain elevated, citing a 7% royalty rate, electricity tariffs averaging about US$0,14 per kilowatt-hour, high borrowing costs and expensive diesel.
“These challenges have adversely affected the viability of PGM operations. We appreciate government efforts to improve the ease of doing business in the mining sector and urge the authorities to fast-track reforms to ensure that the cost structure is competitive enough to support the viability of PGM projects,” Mhembere said.
Despite the headwinds, the industry remains optimistic about Zimbabwe’s long-term prospects, supported by the country’s vast mineral resources.
Zimbabwe hosts the world’s third-largest PGM reserves after South Africa and Russia, with an estimated 32 million ounces of platinum and palladium.
Mhembere said producers remained committed to the government’s beneficiation agenda and had expanded smelting capacity to ensure all concentrates are processed locally.