Published: 02 November 2013

Market analysts say Zimbabwe is poised to become a major force in the global platinum trade given the challenges facing South Africa's platinum sector.

With the high cost of production and recent job actions in South Africa which has threatened the maximum performance of Africa's biggest economy's platinum sector, market analysts say Zimbabwe is likely to emerge as the alternative major source of the precious metal.

According a recent statement by a leading global platinum consultant Stephen Forest, it is clear that South Africa's mighty market grasp is slipping while at the same time Zimbabwe's platinum is coming in at a significantly lower cost.

The consultant says the country is likely to become a primary source of the commodity as demand continues to surge.

According to experts, Zimbabwe platinum mines' average shaft depth is only 230 metres below surface compared with an average South African shaft depth of 1 010 metres below the surface.

The difference makes it cheaper to produce the commodity in Zimbabwe than South Africa.

The development comes at a time the country's platinum production surged by 19,6 percent in the first nine months of 2013 to 9 thousand 838 comma 61 kilogrammes compared to 8 thousand 224 comma 35 kilogrammes in the same period last year.

While the price of the metal has remained depressed, players in the sector are pinning hopes on the anticipated increase in demand arising from Asia, in particular China and India.
- zbc

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