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Golden Sibanda Senior Business Reporter
Zimplats controlling shareholders, South Africa’s Impala Platinum, have “interesting” ideas regarding establishment of a precious metals refinery, a senior Government official said.
Deputy Mines and Mining Development Minister Fred Moyo yesterday said he had a fruitful meeting with Implats chairman Mr Khotso Mokhele.

“I had a meeting yesterday with the chairman of Implats, he left this morning. We had an interesting discussion with him. They (Implats) have got ideas which we are beginning to consider,” he said.

Zimplats, which is listed on the Australian Stock Exchange, is owned 87 percent by Implats, which is also a 50-50 joint venture in Mimosa Mining Company with Aquarius.

The firms have, however, submitted indigenisation and empowerment plans, which have been approved, in line with Government policy. The agreement will result in indigenous people owning at least 51 percent stake in the platinum mining companies.

Zimbabwe is home to more than 40 different mineral occurrences comprising an abundant resource stock of such key minerals as gold, platinum, diamond, nickel and chrome.

It also has the world’s second biggest reserve of platinum after South Africa and is believed to have the potential to supply a quarter of diamonds traded on the international market. But there is a strong feeling in the Government that despite this mineral wealth the mining sector does not contribute meaningfully to the fiscus, hence the need for beneficiation and value addition to be key parts of economic policy to ensure optimum returns from export of minerals.

As such, Government has identified mining as the centrepiece of economic growth in the short to medium-term and considers mineral beneficiation a key element of that thrust.

“It is not enough to say we own (say) 50 percent of the diamond companies. We have to be accountable for the equity to ensure real financial benefit to our people,” he said.

Minister Moyo said through beneficiation, the Government could get many people to benefit from the mining sector.

The Chamber of Mines of Zimbabwe says mining contributes about 12 percent to Gross Domestic Product and accounts for over 50 percent of Zimbabwe’s exports.

The thrust towards beneficiation and mining as the axis for economic growth follows an African Union resolution that Africa should benefit more from its natural resources than ever before. It is against this background that mineral beneficiation forms a critical component of the Zimbabwe Agenda for Sustainable Socio-economic

Transformation, Government’s new medium term economic blueprint 2014-2018.

To that end, Government gave mining firms up to the end of this year, when the two-year ultimatum given by former mines minister Dr Obert Mpofu expires, to set up a precious metals refinery after which raw platinum exports will be banned. Further, Finance and Economic Development Minister Patrick Chinamasa in January introduced a 15 percent levy on export of unbeneficiated platinum as part of Government’s efforts to nudge mining companies to expedite a precious metals refinery.

Presently, platinum mines Zimplats, Mimosa and Unki export their produce, about 430 000 ounces according to 2013 production figures, in raw form. The raw metal is refined in South Africa.