Zimbabwean miners are forecasting a drop in profits in 2025 due to rising production costs and a weak outlook for platinum and lithium, according to a report from the Chamber of Mines of Zimbabwe (COMZ).
The report highlights a combination of global and local challenges that are expected to negatively impact the country’s mining revenue next year. Zimbabwe is rich in platinum group metals (PGMs), gold, and lithium, but profitability is under pressure.
Isaac Kwesu, COMZ’s chief executive, noted, “The issue of rising costs continues to dampen the spirit of profitability.”
Production costs are projected to increase by 8% in 2025, with energy demands rising to 800 MW per day from 600 MW in 2024.
Despite being one of Zimbabwe’s top foreign currency earners alongside tobacco and horticulture, the mining sector continues to struggle with rolling power outages and currency exchange losses.
In 2024, the industry reportedly lost approximately $500 million in potential revenue due to power disruptions.
While miners expect gold prices to rise by 12% in 2025, they foresee a 15% decline in platinum and lithium prices. Despite these challenges, business confidence is anticipated to improve, with capital expenditure in the sector expected to exceed $600 million in 2025.
