Zimplats invests $5bn in Zim over 14 years (File pic)
Zimplats

Zimplats

Business Reporter—

ZIMBABWE Platinum Mines, the country’s largest platinum producer, says it has invested nearly $5 billion funding various aspects of its mining operations in Zimbabwe since 2002.According to the miner’s cash utilisation register for the period 2002 to September 2016, it spent 40 percent of the funds, $1,958 billion, on procurement costs.

The second biggest chunk of the investment, $1,389 billion went towards capital projects, representing 29 percent of the capital outlay into Zimbabwe over almost a decade and half.

Payments to Government such as income tax, royalties, customs duties and pay as you earn accounted for $582 million or 12 percent of the cash utilisation over the 14 months period.

Zimplats said $442 million or 9 percent of the expenditure was spent on employment while $403 million or 8 percent of the investment was used to repay the platinum mining giant’s loans.

Zimplats used $63 million or 1 percent to pay dividends. The Australia Stock Exchange listed platinum group metals extractor also said $34 million was paid as advances to the Reserve Bank of Zimbabwe, which is less than 1 percent of the outlay.

Zimplats revenue for the quarter to September 2016 decreased by 24 percent to $98,5 million from the previous quarter while profit from operations after royalties of $16,2 million was realised during the quarter from $25,6 million recorded in the prior quarter.

The company has started development of Portal 6 replacement mine project. The mine was designed to produce 2,2 tonnes per annum, 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 board for approval.

Chief executive Alex Mhembere said work on the box cut has commenced and should be completed by calendar year-end.

The cost for this preliminary work for Portal 6 is $7,5 million and was approved by the Zimplats board in May 2016.

According to Zimplats, this Portal 6 accesses 63 million tonnes of potential “reserves” at a grade of 3,1 g/t and delivers 3 million ounces of platinum and 2,4 million ounces of palladium.

The portal has a life of 34 years and would employ about 800 full time employees and 200 contractors.

Once commissioned the portal provides 2,2 million tonnes per annum into the state of the art Ngezi/Selous metallurgical complex where the material is ultimately beneficiated to a smelted matte in the 12,5 megawatt furnace.

Once the P6 project is commissioned, Zimplats would continue to deliver 6,2 million tonnes per annum and 260 000 ounces of platinum and 220 000 ounces of palladium for more than 30 years and that it maintains volumes of tonnage and PGM production of about 500 000 ounces per annum.

Zimplats is owned 87 percent by Johannesburg listed platinum giant, Impala Platinum Holdings and is Zimbabwe’s biggest PGM producer after Sibanye’s Mimosa Mining Company and Anglo American Platinum owned Unki Mine.

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