Zimplats is tripling its processing capacity and plans to handle concentrates from other mining firms at its new smelter. Encouraged by a recovery in platinum prices, the company is also considering redeveloping a mine that shut down 27 years ago.
The smelting plant at Selous, part of Zimplats’ US$1.8 billion expansion plan, can process 380,000 tonnes of concentrate annually, Zimplats Chair Thandi Orleyn said at the smelter’s commissioning ceremony on Wednesday. The country’s biggest platinum miner has already allocated US$1.1 billion of its 10-year investment plan, which runs through 2031, she added.
The plant “is well positioned to handle feeds from other PGM producers presently in existence and in the future,” she said. The expansion reflects a wider push across Africa to add value to natural resources before exporting them.
In Zimbabwe, the central bank’s retention of hard currency from exporters has been one of the challenges faced by producers. Orleyn told Bloomberg that the company has raised concerns about the country’s currency volatility with the Zimbabwean authorities. “There is a sense that this is a long-term relationship and the currency volatility in a geopolitical environment as we are facing at the moment is something to be expected,” she said
Zimplats is also considering reopening a mine mothballed in 1998, after platinum prices rallied to their highest level in more than a decade. Zimplats took over the Hartley mine when it acquired assets previously owned by BHP in 2001. The mine was put under care and maintenance after failing to meet key production targets, Orleyn said.
“Zimplats is conducting studies and trials to develop a safe and efficient mechanised mining method for reopening the mine,” she said.
Platinum prices surged 36% in the second quarter, driven by a rise in Chinese imports and a drop in supply from major producer South Africa. A two-year slump in prices has forced Impala and its peers to suspend projects and cut costs. Last year, Zimplats postponed spending on some of its $1.8 billion capital projects, citing weak prices for the metals used to make catalysts that curb toxic emissions in vehicles. The company has, however, now completed projects including the first phase of a 185MW solar plant and an expanded smelter. Zimplats said it planned to complete the capital projects, including the rehabilitation of a base metal refinery, by 2031. – (Bloomberg/Reuters)
