Zimplats injects US$850 million in major projects

04 Feb, 2025 - 18:02 0 Views
Zimplats injects US$850 million in major projects

Business Writer

The country’s largest platinum producer, Zimplats, has injected US$850 million so far under its US$1,157 billion capital expenditure programme, with some of the projects nearing completion.

Zimplats, in its quarterly update for the period ending December 31, 2024 said the projects include the US$386 million Mupani Mine development (replacing the depleted Rukodzi and Ngwarati mines) and a US$544 million expansion and sulfur dioxide (SO2) abatement plant project.

A total of US$32 million has been spent on the Base Metal Refinery refurbishment project, against a total budget of US$190 million.

“The development of Mupani Mine is progressing well and remains on schedule, with full production of 3,6 million tonnes per annum planned for the first half of the financial year 2029.

“Cumulatively, US$339 million was spent as at 31 December 2024 against a total project budget of US$386 million,” said Zimplats.

The 35-megawatt (MW) solar plant project, commissioned in August of last year, was completed on budget at US$37 million and is now operating at its designed generation capacity.

During the quarter, Zimplats scaled back exploration activities due to depressed international metal prices, focusing instead on analysing existing data and updating its geological and mineral resource models.

The company also reported that mined volumes during the quarter ending December 2024 were negatively impacted by limited availability of trackless mobile machinery (TMM) and intermittent power outages.

Volumes declined by 7 percent year-on-year and were 8 percent lower than the previous quarter, the company said.

The cessation of primary operations at Ngwarati Mine in June 2024 was successfully offset by increased production from pillar reclamation at Rukodzi Mine and output from the newly operational Mupani Mine.

A 1 percent year-on-year improvement in the 6E head grade, (six platinum group metals that are typically mined and processed together) was achieved, driven by increased tonnage from higher-grade zones at the Rukodzi and Mupani mines.

Milled volumes decreased by 6 percent year-on-year and were 8 percent lower than the preceding quarter because of lower ore supply and constrained operating capacity at the concentrator plants due to mill reline shutdowns, said Zimplats.

Commissioning of the expanded smelter resulted in improved smelting capacity and an increase in concentrator mass pull.

Resultantly, concentrator recoveries improved by 1 percent year-on-year and by 4 percent from the preceding quarter.

In total, 6E concentrate volumes of 158 803 ounces were 5 percent weaker year-on-year and 4 percent lower than the preceding quarter.

Total operating cash costs increased by 3 percent year-on-year and quarter-on-quarter, due to higher power costs following the commissioning of the expanded smelter, as well as timing differences on the replacement of major engineering components completed in the period under review.

Transfers to closing stocks from operating costs for the period amounted to US$18,5 million, largely due to the accumulation of concentrate and furnace stocks ahead of commissioning and the optimisation of the increased installed smelting and converting capacity at the metallurgical complex.

Consequently, cash costs of metal produced decreased by 10 percent year-on-year and were 4 percent lower quarter-on-quarter.

Operating cash costs of US$935 per ounce, were 13 percent and 11 percent higher year-on-year and quarter-on-quarter, respectively, due to the impact of lower production volumes in the period.

 

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