eBusiness Weekly
Michael Tome
ZIMBABWE Platinum Mines (ZIMPLATS) says over US$400 million worth of investment programmes have thus far been implemented as part of the group’s envisioned US$1,8 billion expansion drive.
The platinum miner’s ongoing expansion programme, saw the commissioning of the third concentrator worth US$104 million on Wednesday after a construction period of 20 months.
This newly fabricated plant is a significant value addition initiative by the mine as it moves to accrue maximum benefit from its mining operations.
Major among the capital expenditure projects currently embarked on by the platinum miner is the development of a Base Metal Refinery (BMR) and a 185 megawatt solar power plant at a combined investment of US$210 million.
Implementation of the 35MW solar plant at Selous Metallurgical Complex (SMC) which is phase one of the 185MW solar project, is earmarked for completion by the end of July 2023.
Some of the key projects underway include the construction of a bigger smelter at SMC, a wet acid plant that will produce sulphuric acid used in the manufacture of phosphate fertilisers for agricultural purposes.
The string of projects will be coupled with expansion of tailings storage facilities.
Construction of the BMR will be a giant step in local mineral beneficiation and value addition, as Zimbabwe moves towards full beneficiation of platinum in the country.
Commissioning of the new plant comes after the concern pumped a total of US$340 million into the first phase of Zimplats’ expansion programme.
This was followed by the second phase of the expansion programme where a total of US$492 million was invested covering the development of Mupfuti Mine, and the establishment of a second concentrator plant.
According to Zimplats, the set of executed investments has propelled its production to increase capacity to 6,2 million tonnes per annum (tpa) from the previous 4,2 tpa.
Officiating at the commissioning of the third concentrator, Implats board chairperson, Thandi Orleyn said Zimplats was a proud investor in the country and was moving ahead to invest more in the country.
“We are now on the third phase of expansion programmes with an investment tag of a potential US$1,8 billion. The programme began following the signing of the Memorandum of Understanding (MOU) between Zimplats and the Government in 2021.
“The ongoing expansion programme, of which US$1,4 billion has already been approved by the Zimplats board and shareholders began last quarter of the 2021 calendar year.
“I am happy to report that several of the projects within the expansion programme have already registered commendable progress,” said Orleyn.
Mines and Mineral Development Minister Winston Chitando lauded Zimplats for taking the lead role in making investments in the core mining sector.
“This plant represents a significant milestone in our country’s efforts to add value to our mineral resources and promote sustainable development in the mining industry.
“The sulphuric acid plant that the company intends to install will produce 100 kilotonnes of sulphuric acid per annum. The sulphuric acid will be used in the manufacturing of fertilizers in the country, thereby reducing acid imports,” said Minister Chitando.
According to Zimplats, the development phase of the concentrator project saw employment of 700 people at peak and about 6000 jobs will be created in the execution of the potential US$1,8 billion projects.
This will potentially generate incomes at household levels for several families in the country and substantial revenue flows to the fiscus.
Zimbabwe is the world’s third-largest producer of platinum after Russia and South Africa and Zimplats, Unki, and Mimosa are the country’s major producers of platinum.
PGMs output is projected to remain on a positive trajectory in view of several platinum projects that are currently underway.
These include investments being channelled towards the mineral’s extraction by Karo Resources and Great Dyke.
Zimbabwe envisions a US$12 billion mining industry by 2023 and platinum is anticipated to contribute US$3 billion as production is projected to improve to 2,5 billion ounces in 2023 from 979 000 in 2018.
Gold and diamonds are expected to contribute US$4 billion and US$1 billion respectively while chrome, iron and carbon steel will contribute US$1 billion.
Coal and hydrocarbons are also forecast to contribute US$1 billion while lithium is projected to generate US$500 000.
Despite the economic and supply chain challenges, demand for platinum from automotive, jewellery and industrial end uses remained robust, with ongoing tightness in the platinum market illustrated by continued elevated lease rates, which were accentuated by ongoing high levels of excess imports into China.
