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Zimbabwean miners expect profits to decline
on the back of anticipated high costs of production and a weak outlook for
platinum and lithium in 2025, according to a report.
A confluence of global and local factors
will eat into the southern African country's mining revenue and profit next
year, said the report by the Chamber of Mines of Zimbabwe (COMZ).
Zimbabwe is known for abundant deposits of
platinum group metals (PGMs), gold and lithium.
"The issue of costs continue to dampen
the spirit of profitability," said Isaac Kwesu, COMZ's chief executive.
Costs of production are expected to
increase by an average of 8% in 2025. Miners expect energy needs to grow to 800
MW per day in 2025 from 600 MW this year.
Zimbabwe's mining industry, one of its
highest foreign currency earners alongside tobacco and horticulture, continues
to be blighted by rolling power cuts and exchange losses.
In 2024, the mining sector lost around
$500-million in potential revenue to power outages, the report said.
Miners however expect gold prices to remain
bullish, increasing by an average of 12% in 2025 with PGMs and lithium
declining 15%, the report said.
Business confidence is also expected to
improve with capital expenditure seen exceeding $600-million in 2025.