After years of stagnation or even decline, platinum prices are up more than 40% this year, making it the best-performing precious metal by mid-2025. As the global market heads toward a third consecutive annual deficit, producers are looking to capitalize on the momentum.

Zimbabwe is preparing to restart the development of the Darwendale platinum deposit. Trevor Bernard, CEO of Kuvimba Mining House, confirmed this just days after a similar announcement regarding another Zimbabwean platinum project. These statements come as platinum prices have risen more than 50% year-on-year.

In a July 9 update, Tharisa stated it is "working on concluding funding solutions to accelerate the final development" of its Karo Platinum project in Zimbabwe. Karo is expected to deliver 200,000 ounces of platinum group metals annually during the first phase of an operation projected to last more than half a century. For the 2024 fiscal year, Tharisa spent $84.1 million on the project and plans to allocate $186.2 million for the 2025 fiscal year.

Regarding Darwendale, Bernard explained, in comments reported by Reuters, that the project will begin with an initial investment of $50 million. This significantly contrasts with the $450 million previously planned for the first phase several years ago. The project’s development was notably hampered by the 2022 withdrawal of Russian partner Vi Holding, largely due to Western sanctions against Moscow following the war in Ukraine.

"That is quite a change in scope and phasing because it's very difficult to raise $450 million specifically for a platinum project and in Zimbabwe," said the Kuvimba Mining House CEO. He added that funding would be secured through a mix of internal resources, debt, and financing from Zimbabwe’s sovereign wealth fund, Mutapa, Kuvimba’s parent company.

Global Market Under Pressure

In recent years, several platinum projects have slowed due to weak prices. After launching construction of the Karo mine in December 2022, with commissioning initially planned for July 2024, Tharisa announced in October 2023 it was postponing production start to June 2025. The company cited "the current PGM basket price weakness and uncertain global economic outlook," adding it would reserve the option to accelerate the timeline once market conditions improved. It is against this backdrop that platinum prices have surged in recent weeks.

According to commodity pricing site Trading Economics, the benchmark contract showed a 51% year-on-year increase on Thursday, July 17, reaching $1,470 per ounce. With a 28% rise in June, platinum recorded its best monthly performance since 1986. This spike has been driven by a mix of factors: increased speculative demand linked to projected platinum consumption growth in the U.S. auto industry, significant purchases in China, and tight supply. In May, the World Platinum Investment Council (WPIC) estimated that the market is set to post a third consecutive annual deficit in 2025, at 966,000 ounces.

Still, it remains to be seen whether these project developers’ announcements will secure the necessary financing. The viability of these revival plans will also depend on sustained market tightness, as analysts remain divided. Citigroup’s three-month price forecast stands at $1,250 per ounce, signaling an expected decline. In contrast, World Bank analysts stated at the end of June that "supply constraints are expected to support" platinum prices.

In June, WPIC projected refined platinum production of 491,000 ounces in Zimbabwe for 2025, rising to 563,000 ounces by 2027. The institution’s next forecasts will indicate the level of confidence experts have in the ambitions of Tharisa and Kuvimba.

Globally, South Africa remains the dominant supplier, with 3.8 million ounces of refined platinum expected in 2025, out of a total estimated global output of 5.4 million ounces. Russia, Canada, and the United States round out the list, but at significantly lower levels.

Emiliano Tossou