Impala Platinum (Implats) says it is navigating the perceived risk of operating in Zimbabwe as it scrambles to pay its suppliers and employees on time under the country’s foreign currency rules.
Zimbabwean exporters can retain only 70% of foreign earnings, while 30% must be surrendered to the central bank and converted into local currency under the country’s foreign currency rules. Implats, which operates the Zimplats mine in the Great Dyke region southwest of Harare, said it was working with the government to find a solution.
Speaking to analysts during the presentation of the group’s financial results for the six months ended December 2025, CEO Nico Muller said the big issue in Zimbabwe is the uncertainty of policy and shifts that happen from time to time that spook foreign direct investors.
“If it’s difficult, that’s one thing. If you’re never certain what the rules are going to be in the next year, that is a different kettle of fish,“ he said.
Muller said that at the moment there is elevated risk for Implats, and the company is engaging the Zimbabwean government because its perception of risk has “materially shifted upwards” over the last year or two.
“In part it’s the change in policies, but it’s also got to do with the retention of local currency that is owed to Zimplats in exchange for the foreign currency retention in terms of the policy of Zimbabwe,” he said.
We are worried that we are not able to pay our suppliers and our people on time, and that is why we are continuously engaging with the government to find a solution
— Meroonisha Kerber, Implats CFO
“The fact that we are not getting regular releases of local currency has impacted the business,” Kerber said. “It does not allow us to pay our suppliers, to pay our employees, some of whom are paid in local currency. It has been disruptive to operations, and you can see we have accumulated a lot of cash in the local currency.
Muller said Implats is scheduled to meet with officials from the South African and Zimbabwean governments to find a solution.
“I have to believe that a successful outcome will be achieved,” he said. “It has always been achieved in the past. I’m very confident that we will get to a similar position right now. Our posture will not necessarily change with immediate effect.”
Mining companies are owed millions in unpaid export income because of the foreign currency rules.
Implats CFO Meroonisha Kerber told journalists earlier that the currency rules had disrupted the company’s operations. She said Zimplats had R1.6bn in local currency and was in talks with the government about the issue.
“The fact that we are not getting regular releases of local currency has impacted the business,” Kerber said. “It does not allow us to pay our suppliers, to pay our employees, some of whom are paid in local currency. It has been disruptive to operations, and you can see we have accumulated a lot of cash in the local currency.
“The problem is that there is release, but it is intermittent, and it makes it very difficult to plan the business. We are worried that we are not able to pay our suppliers and our people on time, and that is why we are continuously engaging with the government to find a solution that going forward will allow them to try and maintain fiscal stability that they want, but also allow us to get access to adequate cash to run our business.”
Zimbabwe owns the world’s third-largest reserves of platinum group metals (PGMs), mainly in the Great Dyke region, and several mining companies have a footprint in the country.
Last week, Valterra Platinum CFO Sayurie Naidoo said that due to the 30% retention rule, it had about $100m in the last year “that hasn’t been able to be accessed by us”.
However, Muller said Implats believed that long-term partnerships were critical, and the group had had worse times in Zimbabwe, where it has had a 25-year presence.
“Funny enough, we’ve actually had worse times. I can remember there were times we had to pay employees in money, in groceries and so forth,” he said.
Implats, which produces PGMs from mines in South Africa, Canada and Zimbabwe, reported an 11% increase in unit costs during the period and soared on the 40% increase in the rand basket price.
The company declared an interim dividend of 410 cents per share, representing a payout of 60% of adjusted free cash flow generated in the period under review.
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