South Africa has urged Zimbabwe to settle more than US$228 million owed to platinum group metals (PGM) producers after delays in paying mining companies for th...
South Africa has urged Zimbabwe to settle more than US$228 million owed to platinum group metals (PGM) producers after delays in paying mining companies for the portion of their export earnings surrendered under Zimbabwe’s foreign currency retention policy.
South African Mineral and Petroleum Resources Minister Gwede Mantashe said his government was engaging Zimbabwean authorities over the outstanding payments, which he said were affecting PGM producers operating in the country.
“What I’m discussing with the Zimbabwean government is the payment of 30% that is deducted in local currency and never given back to PGM producers. I want them to pay back the money,” Mantashe said while speaking to the media.
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Under Zimbabwe’s foreign currency retention framework, exporters are required to surrender 30% of their export proceeds through government channels, with the amount converted into local currency. The remaining 70% can be retained in foreign currency. Delays in accessing the surrendered funds have left mining companies with significant outstanding balances.
The scale of the outstanding payments was disclosed in June by Platinum Producers’ Association chairman Alex Mhembere. Speaking at a mining conference in Victoria Falls, Mhembere said PGM producers were owed more than US$228 million as of May 2026.
“These engagements have not resulted in significant change to the situation, with latest statistics showing that PGM producers are owed more than $228 million as of May 2026,” Mhembere said. He said the industry was calling on the government to settle the outstanding balances and ensure future surrender payments were made on time.
The delays have created cash-flow pressures for platinum producers, according to the industry. Mhembere said the outstanding payments had contributed to the postponement of some capital projects, while companies were already dealing with high operating costs and unreliable electricity supplies.
The Finance Ministry has acknowledged the outstanding obligations and attributed the delays to revenue constraints. The issue has become particularly significant for South African mining companies because several major producers operating in Zimbabwe are owned or controlled by South African groups.
One of the companies affected is Valterra Platinum, formerly Anglo American Platinum. The South African mining company said in February that it was owed about US$100 million by the Zimbabwean government in export proceeds from its Unki platinum operation. The company said it had begun receiving some payments in 2026 but still expected further payments.
Valterra’s annual report said the outstanding amounts arose from the conversion of 30% of Unki’s export proceeds into local currency. The company said difficulties in accessing the funds meant that some amounts could no longer be treated as readily available cash.
Impala Platinum has also reported a significant outstanding balance. The company, which owns Zimbabwe’s largest platinum producer, Zimplats, has said the Zimbabwean government owes it about US$78 million in surrendered export proceeds. Zimplats had US$78.1 million in a deferred liquidation account at the end of December 2025.
The figures from individual companies form part of a wider payment problem affecting Zimbabwe’s PGM industry. Producers owned by South African mining companies, including Sibanye-Stillwater, generated about US$1.8 billion in export revenue in 2025, highlighting the importance of the sector to Zimbabwe’s foreign currency earnings.
PGMs are among Zimbabwe’s most important mineral exports and are used in several industrial applications, including vehicle catalytic converters that help reduce harmful emissions. The sector is the country’s second-most valuable mineral export after gold.
Zimbabwe is also a major producer of platinum group metals globally. Industry reports place the country behind South Africa and Russia among the world’s largest PGM producers, making its platinum sector strategically important to both Zimbabwe and its neighbouring South Africa.
For Zimbabwe, the foreign currency retention policy is intended to ensure that the country has access to foreign exchange needed for imports, investment and other obligations. However, the delays in paying exporters the local-currency equivalent of surrendered proceeds have become a concern for mining companies that depend on predictable cash flows to maintain operations and finance projects.
The problem has also emerged as Zimbabwe’s platinum industry continues to deal with difficult operating conditions. The sector has been recovering from a prolonged period of depressed PGM prices, while producers face high costs and electricity supply challenges.
The payment delays have therefore become an important issue for companies planning new investment in Zimbabwe. Mining operations require substantial capital for equipment, expansion, maintenance and other projects, and delayed access to export earnings can make it harder for producers to allocate funds to those activities.
The dispute also highlights the competing financial pressures facing Zimbabwe. The government relies on exporters to surrender part of their foreign currency earnings, while mining companies require access to the value of those earnings to fund their businesses.
Mantashe’s intervention adds pressure on Harare to address the backlog, particularly because South African companies have substantial investments in Zimbabwe’s platinum industry. His comments come as producers continue to engage Zimbabwean authorities over the outstanding payments.
The industry has previously raised concerns about the retention system and its effect on cash flow. Valterra, for example, sought discussions with Zimbabwean authorities over a structured payment plan for more than US$100 million owed from surrendered export proceeds generated by Unki.
The outstanding US$228 million also extends beyond the interests of individual mining companies because platinum is a major source of foreign currency for Zimbabwe. Any prolonged disruption to payments could affect investment decisions and the ability of producers to expand or maintain operations.
The government’s challenge is to balance its need to retain foreign currency with the need to maintain confidence among exporters. For mining companies, predictable access to their earnings is important when planning production, repaying debt, maintaining operations and funding new projects.
The latest engagement between South Africa and Zimbabwe therefore places the outstanding PGM payments firmly on the regional mining agenda. The amount owed to producers had reached more than US$228 million by May 2026, according to the industry, while individual companies have disclosed substantial amounts outstanding from Zimbabwean authorities.
For now, the platinum industry is seeking faster settlement of the existing balances and more predictable payments going forward. The outcome of discussions between the two governments could have implications for South African mining companies operating in Zimbabwe and for the wider investment environment in the country’s mining sector.
