HARARE, Oct 10 (Reuters) – Zimbabwean miners expect profits to decline on the back of anticipated high costs of production and a weak outlook for platinum and lithium in 2025, according to a report.

A confluence of global and local factors will eat into the southern African country’s mining revenue and profit next year, said the report by the Chamber of Mines of Zimbabwe (COMZ).

Zimbabwe is known for abundant deposits of platinum group metals (PGMs), gold and lithium.

“The issue of costs continue to dampen the spirit of profitability,” said Isaac Kwesu, COMZ’s chief executive.

Costs of production are expected to increase by an average of 8% in 2025. Miners expect energy needs to grow to 800 megawatts per day in 2025 from 600 megawatts this year.

Zimbabwe’s mining industry, one of its highest foreign currency earners alongside tobacco and horticulture, continues to be blighted by rolling power cuts and exchange losses.

In 2024, the mining sector lost around $500 million in potential revenue to power outages, the report said.

Miners however expect gold prices to remain bullish, increasing by an average of 12% in 2025 with PGMs and lithium declining 15%, the report said.

Business confidence is also expected to improve with capital expenditure seen exceeding $600 million in 2025.

(Reporting by Nyasha Chingono; Editing by Bhargav Archaya and Ros Russell)