Zimbabwean miners are expecting a decrease in profitability next year due to the projected high costs of production and a negative prognosis for platinum and lithium, according to a report.
Production costs are projected to rise by an average of 8% next year.
"The issue of costs continues to dampen the spirit of profitability," Reuters quoted the Chamber of Mines of Zimbabwe (COMZ)'s chief executive Isaac Kwesu as saying.
Miners anticipate that their energy requirements will increase from 600 MW this year to 800 MW per day in 2025.
Rolling power interruptions and exchange losses continue to plague Zimbabwe's mining industry, which is one of its major foreign currency earners, in addition to tobacco and horticulture.
Power disruptions resulted in the mining sector losing over $500 million in potential income in 2024, states the report.
The report showed that miners anticipate that gold prices will continue to rise by an average of 12% in 2025, while PGMs and lithium are expected to decline by 15%.
Also anticipated is an increase in business confidence, as capital spending is estimated to surpass $600 million in 2025.
Zimbabwe is endowed with abundant resources such as lithium, gold, and platinum group metals (PGMs).
Mathew Nyaungwa, Editor in Chief, Rough&Polished
