Cash crunch in Zimbabwe leaves South African miner chasing $100m

South African miner Valterra Platinum says it is owed about $100 million in export proceeds by Zimbabwe’s government, highlighting persistent foreign exchange pressures facing mining companies operating in the country.

• Valterra Platinum says Zimbabwe owes it $100 million under the country’s forex retention policy.
• The miner is receiving partial payments but warns that the backlog highlights ongoing currency risks.
• Despite the dispute, Valterra’s 2025 earnings doubled on stronger platinum prices and cost cuts.
• The development underscores the tension between Zimbabwe’s cash constraints and investor confidence.

Speaking during a results call on Wednesday, chief financial officer Sayurie Naidoo said the funds remained inaccessible due to Zimbabwe’s retention policy, which requires exporters to convert 30 percent of their foreign currency earnings into local currency.

“It’s about $100 million that hasn’t been able to be accessed by us,” Naidoo told analysts, adding that the company is now receiving partial payments and expects further remittances in the coming months.

Zimbabwe’s Ministry of Finance and the Reserve Bank did not immediately comment. Authorities have previously cited cash flow constraints for the payment delays, according to the country’s mining chamber.

The issue affects several platinum producers operating in Zimbabwe, where Valterra’s Unki mine accounts for roughly 7 percent of the group’s concentrate output. The mine produced 219,700 ounces of platinum group metal concentrates in 2025.

Despite the receivables backlog, the company reported strong financial performance. Valterra said full year headline earnings doubled to 16.7 billion rand, about $1.05 billion, driven by stronger platinum prices and cost reductions.

Platinum price rally powers earnings surge

The results were supported by a 26 percent rise in the platinum group metals basket price and operational savings of 5 billion rand, roughly $313 million. Shares in the company rose more than 10 percent following the announcement.

Valterra also declared a final dividend of 43 rand per share, about $2.70, bringing total shareholder payouts for 2025 to 12 billion rand, approximately $751 million.

The earnings surge comes amid a sharp rally in platinum markets. Spot platinum prices more than doubled in 2025, reaching a record $2,757.69 per ounce in January, buoyed by tight supply and renewed investor demand.

The metal is widely used in catalytic converters that reduce vehicle emissions, and prices have also been supported by policy shifts in the European Union regarding combustion engine timelines.

For Valterra, however, Zimbabwe’s foreign exchange regime remains a key operational risk even as profits climb.