Zimplats eyes US$500m investments

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ZIMPLATS, the country’s biggest platinum producer, has lined up investments worth more than US$500 million despite declining commodity prices on international markets.

Platinum prices dropped to their lowest in five years at US$834 per ounce in November 2015.

Before the current rout on commodity prices, platinum peaked at US$2 270 per ounce on March 5, 2008, the highest in 10 years.

On Thursday, the metal was trading at US$ 1 158 per ounce.

Zimplats corporate affairs manager Ms Busi Chindove said last week the miner was pressing ahead with its US$491 million phase two expansion project, which includes a 2,2 metric tonnes per annum (mtpa) mine, a concentrator module, a 30 500-megalitre dam and nearly 900 employee houses.

Also the redevelopment of Bimha Mine, which collapsed in July 2014, and investments in the Selous Base Metal Refinery and Portal 6 will continue.

Phase two is more than 92 percent complete at a cost of US$453 million.

“A total of US$16,3 million has been spent to date and US$15,2 million has been committed,” said Mrs Chindove.

Zimplats ceased all mining activities at its Bimha Mine on July 18 2014, leading to a 50 percent decline in volume. At the time, Bimha was the largest of Zimplats’ four active mines.

Portal 6 is a replacement mine designed to produce 2,2mtpa replacing Rukodzi and Ngwarati mines, which deplete in 2022 and 2025 respectively.

The full design work and bankable feasibility study is at an advanced stage and will be submitted to the company’s board this month for approval.

The coming on line of Portal 6 will allow Zimplats to improve its export capacity.

About 1 000 jobs will be created at Portal 6, with 800 of them being permanent.

Last year, Zimplats embarked on refurbishment of the Selous Metallurgical Complex Base Metal Refinery and has so far invested US$23 million to that end.

Overall, US$131 million is expected to go to the project.

“Going forward progress on the base metal refinery, as with all the other capital projects, will be matched with available cash resources against the background of a host of challenges induced by the prolonged depressed metal prices,” said Mrs Chindove.

Zimplats recently shed more than 21 managerial employees to cut costs.

Source: The Sunday Mail

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