Zimbabwe’s platinum boom: Where is the wealth?
The metal is generating billions, but mining communities say basic services have failed to keep pace.
Mimosa, Zimbabwe – Zimbabwe’s platinum industry is generating billions of dollars, but residents in mining communities say roads, schools, water and other basic services have failed to keep pace with the wealth extracted from beneath their land.
Platinum prices hit an all-time high of $2,923 an ounce on January 26 during a broader precious metals rally and continued concerns over the platinum supply, according to the World Platinum Investment Council.
For Zimbabwe, home to the world’s second largest known deposits of platinum group metals (PGMs) after South Africa, the price surge offers an opportunity to increase revenue from a sector central to the economy. Mining accounts for about 75 percent of the country’s exports and about 14.5 percent of its gross domestic product, according to the International Trade Administration in the United States.
“Our village was where the mine is today, so we were relocated. From our new village, I cross the Ngwazani River, which is now flooded with sewage coming from the mine,” he said.