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Business Reporter

Mimosa Mining Company’s six elements (6E) in-concentrate volume grew by 4 percent to 255 000 ounces in the full year to June 30, 2024, benefiting from plant optimisation, which supported milling volume and recoveries.

In 2021, Mimosa invested US$40 million aimed at expanding mine life and capacity, which also accelerated plant optimisation operations through the North Hill project, which extended Mimosa’s life-of-mine by circa nine years.

The 6E produced by Zimbabwe’s oldest platinum group metals producer are platinum, palladium, rhodium, ruthenium, iridium and gold.

Mimosa’s co-owner, Impala Platinum Holdings (Implats), in a trading statement for the year under review, said tonnes milled were 5,8 percent up to 2,894 million tonnes, compared to 2,735 million tonnes in 2023.

The 6E grade, on the other hand, declined 4,2 percent to 3,61 grams per tonne (g/t) from 3,77 g/t in 2023.

According to Implats, concentrate receipts from third parties declined by 34 percent to 191 000 6E ounces due to the conclusion of two contracts in the third quarter of FY2023.

Mimosa mine operates on the southern portion of the Zimbabwean Great Dyke and is currently one of the lowest-cost primary producers in the industry.

In July 2001, Implats completed the acquisition of a 35 percent stake in Mauritius-based ZCE Platinum Limited, which held a 100 percent interest in Mimosa Mining Company (Pvt) Limited for a consideration of US$30 million, which was used to fund an expansion of the mine from 15 000 ounces to approximately 70 000 ounces of platinum per annum.

According to the World Platinum Investment Council (WPIC), the country holds the second-largest platinum deposits after South Africa.

Platinum supply failed to meet demand in 2023, with a deficit of 851 000 ounces recorded for the year. Prices, however, were under pressure despite the deficit due to concerns that rising market share of PGM-free, battery-powered EVs would reduce demand in the future.

According to the World Platinum Investment Council, the platinum market recorded a deficit of 369 000 in the first quarter of 2024, with a full-year deficit forecast at 476 000 as miners seek to cut costs.

The local mining sector accounts for an estimated 13 percent of Zimbabwe’s gross domestic product (GDP). Growth for the sector was subdued in 2023 at 4,8 percent, impacted by inconsistent power supply and depressed commodity prices.

Mineral output is forecast to grow by 7,6 percent in 2024 as mining companies ramp up production to compensate for 2023’s revenue losses.

However, mineral revenues are projected to decline by 10 percent as global prices of most metals are expected to remain depressed.