HARARE – South African mining group Valterra Platinum says it is owed approximately US$100 million in export proceeds by Zimbabwean authorities, underscoring persistent foreign exchange pressures confronting mining firms operating in the country.
According to Business Insider Africa, the receivables backlog stems from Zimbabwe’s foreign currency retention framework, which requires exporters to surrender a portion of their earnings for conversion into local currency.
Speaking during a results call, chief financial officer Sayurie Naidoo said the funds remained largely inaccessible.
“It’s about US$100 million that hasn’t been able to be accessed by us,” Naidoo told analysts, adding that the company has begun receiving partial payments and anticipates further remittances in the coming months.
Zimbabwe’s foreign exchange regime mandates that exporters convert part of their hard currency earnings into Zimbabwean dollars, a policy authorities argue is necessary to support domestic liquidity. However, mining companies have long cited the framework as a key operational risk.
Neither the Reserve Bank of Zimbabwe nor the Zimbabwe Ministry of Finance immediately commented on the matter. Officials have previously attributed payment delays to broader cash flow constraints affecting the economy.
Impact on Platinum Operations
The payment delays affect several platinum producers in Zimbabwe, including Valterra’s Unki Mine, which accounts for roughly 7 percent of the group’s concentrate output. The operation produced 219,700 ounces of platinum group metal concentrates in 2025.
Industry analysts note that while Zimbabwe remains a strategically important platinum producer, currency convertibility and capital repatriation challenges continue to weigh on investor sentiment.
Earnings Surge Despite Forex Backlog
Despite the outstanding export proceeds, Valterra reported strong financial performance. The company said full-year headline earnings doubled to US$1.05 billion, supported by firmer platinum prices and significant cost reductions.
The results were driven by a 26 percent increase in the platinum group metals basket price and operational savings of approximately US$313 million. Shares in the miner rose more than 10 percent following the earnings announcement.
Valterra also declared a final dividend of US$2.70 per share, bringing total shareholder payouts for 2025 to roughly US$751 million.
Platinum Rally Masks Structural Risks
The earnings growth comes amid a sharp rally in global platinum markets. Spot platinum prices surged during 2025, buoyed by tightening supply conditions and renewed investor demand.
However, for mining companies operating in Zimbabwe, analysts caution that profitability gains may continue to be offset by currency management risks, payment delays, and policy uncertainty.
The latest developments highlight the delicate balance Zimbabwe faces between managing domestic liquidity constraints and maintaining investor confidence in its critical mining sector.
