Unki Platinum Production Drops Amid Rising Costs

Unki Platinum Mine, Zimbabwe’s third-largest platinum group metals (PGM) producer, reported an 8% drop in third-quarter production to 57,500 ounces for the period ended September 2025, down from 62,200 ounces a year earlier, as lower ore grades offset prior capacity upgrades, the company said in its latest update.

Now part of Valterra Platinum following Anglo American’s restructuring, Unki attributed the decline to weaker head grades in active mining sections, which reduced recoveries and refined output.

The mine trails only Zimplats and Mimosa in national PGM production.

Despite the setback, Unki continues to benefit from a 2022 concentrator debottlenecking project that boosted annual output 5% to 243,800 ounces in 2023.

However, escalating electricity cost, now exceeding 20% of revenues, along with input inflation and currency mismatches, have squeezed margins amid soft palladium and rhodium prices.

Valterra’s group PGM sales fell 9% year-on-year to 936,800 ounces excluding the recently acquired Kroondal operation, or 15% including it.

Nickel output dropped 15% to 6,226 tonnes and copper 9% to 4,201 tonnes, partly due to lower work-in-progress releases compared with the prior quarter.

Chrome production rose 10% to 271,000 tonnes on higher Mototolo volumes and yield improvements.

A brighter spot came from a 30% surge in Valterra’s average realized PGM basket price to $1,916 per ounce, the highest since Q1 2023—driven by a weaker U.S. dollar, inflation fears, geopolitical tensions, strong Chinese demand, and supply concerns in key markets.

“The rally reflects bullish macro-, micro-, and sectoral drivers, including resilient growth, robust precious metals investment, and metal availability worries,” Valterra CEO Craig Miller said.

Global PGM markets are stabilising after 2024’s sharp downturn. Palladium demand weakens with the shift to hybrids and electric vehicles, while rhodium eases from pandemic peaks. Platinum shows resilience via catalyst substitution in China and India.
In Zimbabwe, PGMs—often recorded as “nickel mattes” in trade data—remain a top foreign-currency earner, supporting jobs in Shurugwi, Zvishavane, and Ngezi, and bolstering government royalties and taxes.

Valterra’s planned London Stock Exchange listing could unlock global capital for mine extensions and processing, while aligning Zimbabwean PGMs with hydrogen-economy demand.

Success hinges on policy consistency, reliable power, currency stability, and clear beneficiation rules.

“Long-term recovery depends on Zimbabwe’s operating environment,” analysts note.

“With support, the sector can evolve beyond commodity cycles into a strategic growth pillar.”