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A Zimbabwean unit of Impala Platinum Holdings Ltd, the world’s second-biggest platinum producer, has started technical evaluations to set up a smelter at its mine in the country. Two companies have tabled options for the processing facility at Mimosa, which is a venture between Impala and Sibanye Gold Ltd, said Winston Chitando, executive chairman of Mimosa.“The two options will be presented to the board of Mimosa in the next few weeks, and the Ministry of Mines will be updated accordingly on the deliberations by the board,” he said in an interview at the mine in Zvishavane, about 400 kilometres south of the capital, Harare.

Zimbabwe, which has the world’s biggest platinum reserves after South Africa, doesn’t have facilities to process the ore locally and sends it to plants in the neighbouring country.

While the metal has climbed 15 percent this year, it’s almost 50 percent lower than an August 2011 peak.

Impala and Aquarius Platinum Ltd, which Sibanye bought this year, shelved a $70 million expansion of Mimosa last year after Zimbabwe imposed a 15 percent levy on exports of unprocessed ore.

The Government suspended the tax until January 1, and Mimosa is consulting the country on the duty, Impala said earlier this month.

Mimosa “has recently completed a bankable feasibility study for the construction of a smelter at the operation,” as well as a study on a possible 30 percent expansion of output, subject to improved metal prices and capital availability, it said.

Mimosa, which produced a record 119 700 ounces of platinum in concentrate for the year to June 30, “plans to stringently manage costs in order to mitigate ongoing inflationary pressures,” Impala said in a September 1 statement.

Steady-state output will be maintained at about 115 000 ounces annually, it said.

Mimosa will sell its entire stock of more than 1 000 houses to employees as part of an empowerment initiative and will do this together with a local bank, the executive chairman said.

Impala’s Zimplats unit is Zimbabwe’s biggest platinum producer.

Anglo American Platinum Ltd, the world’s largest miner of the metal, operates the Unki complex in the country. – Bloomberg.