Zimbabwe sold more minerals in the first half of the year through the state marketing agency, but earned less for the exports, reflecting the impact of lower metal prices on world markets.
The Minerals Marketing Corporation of Zimbabwe (MMCZ), which markets all minerals except for gold and silver, reports that it sold 1.9 million tonnes of minerals, worth US$1.5 billion in the first six months of the year. The volume was 25% higher than the 1.53 million tonnes of minerals sold over the same period last year, but the exports earned 11% less than last year’s US$1.68 billion for the period.
The mineral sales were below MMCZ’s target for the half year, according to acting General Manager Nomusa Moyo. The corporation had aimed to sell two million metric tonnes valued at US$2 billion, but the metal price crash of key minerals saw the country missing targets.
“Lithium was down 72%, nickel 20%, coal 13%, and coke 39%, translating to significant price declines compared to budget forecasts,” she said. A recovery in some PGM prices and chrome was not enough to offset the impact on overall revenue, she said.
By value, the top three contributors in the half-year were platinum mattes, platinum concentrates and lithium spodumene, Zimbabwe’s main lithium export. Platinum matte accounted for 31.8% of MMCZ’s mineral revenue in the first half, with US$479 million sold. MMCZ sold platinum concentrates worth US$294 million. While concentrate volumes grew 30%, value was up by only 2%, reflecting the slow price recovery. Matte volumes were up 7% but value was down 5%.
Spodumene sales significantly outperformed expectations in the first half of 2024, MMCZ says, with exports more than doubling in value to $233 million in the first half. According to RBZ, Zimbabwe sold lithium worth US$674 million for the full year 2023.
MMCZ sees gold prices, which have hit record highs this week, helping to counter weak platinum prices this year. – (NewZWire)
