Africa’s PGM industry remains highly concentrated in South Africa and Zimbabwe, which account for all 51 identified mining assets. South Africa dominates both active operations and the development pipeline, while Zimbabwe provides a smaller but strategically important second centre. Future supply growth is likely to be gradual and driven by a limited group of expansions and new mines.

[SMM Express] Transport-related costs remain an important cost challenge for South Africa's chrome industry. The Minerals Council South Africa said in its latest Mining Input Cost Inflation report that chrome and manganese experienced elevated input-cost inflation in June, largely due to their reliance on transportation networks, particularly road freight, where higher fuel prices have increased operating costs. The pressure comes alongside elevated energy costs, with the Minerals Council noting that higher fuel prices and the full impact of winter electricity tariffs are expected to keep mining input-cost inflation elevated in the coming months. For chrome producers, the combination of fuel-intensive ore transportation and higher power costs could continue to weigh on margins, particularly for operations dependent on longer road-haulage routes to processing plants and export corridors.

[SMM Express] Southern Palladium has secured a 30-year mining right for its Bengwenyama PGM-chrome project on the Eastern Limb of South Africa's Bushveld Complex. The right was granted by the Department of Mineral and Petroleum Resources on August 7, 2026, marking a key regulatory milestone for the development, which is planned to recover both PGMs and chrome from UG2 ore. The development is particularly relevant to the chrome market following recent metallurgical testwork that lifted expected chromite recovery to 85.6%, from the 30%assumption in the earlier pre-feasibility study, potentially raising chrome concentrate production to about 1.054 million mt/y at the planned Stage 2 expansion. The mining right therefore strengthens the pathway for a future additional chrome supply source from South Africa's Bushveld Complex, although the project remains subject to further development and financing milestones.

Global chrome ore departures from major export ports totaled 717,000 mt in the week ended August 7, up 12.68% week-on-week, according to SMM's latest data. The increase was primarily driven by Maputo, which handled 496,200 mt, accounting for about 69% of total shipments. Richards Bay followed with 171,500 mt, while Mersin recorded 49,300 mt and Beira reported no chrome ore departures. The latest data also shows a notable shift in weekly flows. Maputo shipments increased from 389,300 mt in the previous week, while Richards Bay shipments eased from 180,400 mt and Mersin shipments declined from 66,600 mt. The stronger overall departures, led by Maputo, point to increased seaborne chrome ore flows from Southern Africa during the latest reporting week, with the port distribution highlighting the continued importance of Mozambique and South Africa's export corridors in global chrome ore supply.

Zimbabwe's first lithium sulfate plant, built by China-owned Prospect Lithium Zimbabwe at Goromonzi, reached full operational status in May 2026, mines minister Polite Kambamura confirmed last week. The $400 million facility is Africa's first lithium sulfate plant the first beneficiation announcement in Zimbabwe's sector to convert from construction to verified operating capacity. Carbonate unit still pre-commercial. PLZ's lithium carbonate refining facility is reported near completion but unconfirmed operational; more sulfate capacity is expected sector-wide ahead of Zimbabwe's full concentrate export ban, effective January 2027. Policy driver. Zimbabwe froze raw mineral exports in February 2026 ahead of the 2027 ban, forcing producers to build domestic processing capacity or lose export access. The restriction extends to 13 minerals beyond lithium, including cobalt, PGMs, and rare earths, from January 2027. Investment context. Over $1 billion in lithium sector investment has been logged since February 2026, per policy expert Tedious Ncube though the figure is undisaggregated by project and may blend processing and upstream mining capex. Battery manufacturing remains aspirational. Kambamura flagged domestic battery and solar panel production as a longer-term goal, with no capex, partner, or timeline attached. South Africa currently leads Africa's nascent battery-manufacturing capacity. SMM View: Goromonzi is the first verified beneficiation capacity milestone in Zimbabwe's lithium sector log as confirmed, distinct from carbonate and the $1bn aggregate unverified, project-level breakdown pending). Key watch point: whether sulfate or carbonate capacity build keeps pace with the January 2027 export cutoff or risks a supply disruption relevant to our Zimbabwe ban scenario model.

SMM's own port inventory tracking shows China's total chrome ore stockpiles have remained near record levels through the second half of 2026, even after a modest pullback from their 10 July peak. Inventories touched 509.14 (10,000mt) — roughly 5.09 million tonnes — on that date, before easing to approximately 490.15 (10,000mt), or 4.90 million tonnes, by early August, a drawdown of just 3.7%. Set against the trajectory of the year, that decline barely registers: stocks climbed from a trough near 300 (10,000mt) in late February to above 500 (10,000mt) by mid-year, and the current level remains well above anything seen in the first four months of 2026, confirming that the market is still working through a substantial ore overhang at Chinese ports rather than genuinely destocking. Pricing at Qinzhou Port has firmed alongside this marginal pullback rather than because of any real supply tightening. SMM data shows South African chrome concentrate (Cr2O3 40-42%) at 54.5 CNY/mtu and South African chrome lump (Cr2O3 36-38%) at 56.5 CNY/mtu as of 10 July 2026, with concentrate pricing subsequently climbing to 59.61 CNY/mtu by early August — a gain of close to 9% in under a month. That move should be read cautiously against the inventory backdrop: with port stocks still hovering near their 2026 high, the price recovery looks more like a technical bounce or short-term restocking behavior than evidence of a genuine tightening in the underlying supply-demand balance. Bottom line: China's chrome ore port inventories remain near record highs despite the recent dip, and SMM's data suggests the market has not meaningfully worked through this year's substantial stock build. Until inventories fall more decisively from current elevated levels, the recent price firmness at Qinzhou Port is likely to remain vulnerable to renewed downward pressure, particularly if South African arrivals continue at their current pace.