Zimplats to inject US$1,4bn President Mnangagwa and his deputy Dr Constantino Chiwenga (partially obscured) look on as Mines and Mining Development Minister Winston Chitando (right) and Zimplats CEO Mr Alex Mhembere exchange documents after signing a Memorandum of Agreement at State House in Harare yesterday

Mukudzei Chingwere Herald Reporter

Huge investments totalling US$1,4 billion are planned by major platinum mining house Zimplats in Zimbabwe, with the investment seeing a new mine, local refining of platinum metals before export, a sulphuric acid plant and a 110MW solar power station.

Zimplats signed off on its investment programme before President Mnangagwa yesterday in the form of a memorandum of agreement with the Government that clears the paths for the detailed regulatory approval that these investments will require.

The agreement will see Zimplats establishing a base metal refinery, itself a huge step towards local mineral beneficiation and value maximisation dove-tailing with the National Development Strategy 1 objectives.

Up to now platinum group metals have been exported as concentrates for refining in South Africa. The refinery will also be able to handle the output from the other platinum mines in Zimbabwe now also being refined outside the country.

Zimplats plans a new mine, wants to expand the capacity of its smelter, will construct an additional concentrator, build the refinery and a sulphuric acid plant and put in place a 110 MW solar power plant.

Speaking after the signing off of the milestone investments, President Mnangagwa said the commitment by Zimplats was further evidence of the comfort that capital continues to flow into the Second Republic.

The investment by Zimplats and other mining companies augured well for the target to turn the mining sector into a US$12 billion industry by 2023.

“Government welcomes the intention by Zimplats to construct a base metal refinery as a crucial step towards local mineral beneficiation and value addition of the platinum group of metals. The sulphuric acid plant will contribute strategic raw materials needed in the local manufacturing of fertilisers and help reduce the importation of sulphuric acid.”

President Mnangagwa said the adoption and use of smart energy sources by Zimplats through integrating the development of a 110 MW solar power plant was also commendable.

He expressed excitement at the potential in oil, gas and rare earth elements occurrences in the country.

Yesterday’s agreement, said President Mnangagwa, was a reflection of the importance his administration accords to the mining sector in speeding up the realisation of the outcomes outlined in the National Development Strategy 1 and ultimately the attainment of Vision 2030.

He said it is pleasing that the platinum mining sub-sector has a number of developments taking place, including extensive exploration, opening up of new mines as well as expansion of existing projects.

“These will see the platinum sub-sector contribute about US$3 billion towards the target of a US$12 billion mining sector by 2023. This is in line with my Government’s efforts to ensure the existence of an enabling environment that supports the growth of the mining sector.

Turning to the power station, the President said it would not only bolster the thrust of Zimbabwe becoming energy self-sufficient, but also the attainment of Sustainable Development Goal number 7 on energy, anchored on the diversification of the energy and power mix.

Praising the whole integrated investment programme by the mining company, he noted: “The net effect of these multifaceted investment programmes will undoubtedly improve the standard of living for the people and create massive employment opportunities.”

Vice President Constantino Chiwenga hailed Zimplats’ commitment to Zimbabwe saying it was leading by example in forging good operational relations with the Government.

The investment would help Zimbabwe not to export unprocessed minerals. “Adding value to the minerals before exporting means that we are able to generate more revenue as well as create wealth and employment opportunities for our people,” said VP Chiwenga.

Zimplats CEO Mr Alex Mhembere said the new sulphuric acid plant, needed for the mining company’s own needs would produce extra for other users. Among other things this would reduce the cost of importing fertiliser and the advantages include: “Capacity to produce 100 000 tonnes per annum of sulphuric acid used in the local production of phosphate fertilisers, thereby replacing current acid imports; employment creation of 47 direct permanent jobs at Zimplats, with an opportunity to create more along the value chain, and reduction in fertiliser import by about US$50 million; boost to other industries, water purification, battery manufacturing and other chemical industries.”

Mines and Mining Development Minister Winston Chitando, who signed on behalf of the Government, said: “This agreement strategically is in four aspects, firstly is a growth part, whereby Zimplats is putting in additional capacity to increase production of platinum ores.

“The second aspect is value addition which is the construction of additional smelter capacity, and also a construction of a base smelter refinery, both of which will have the capacity to service not only Zimplats requirements but requirements of other platinum players.

“Thirdly is the aspect of electricity generation where there is a solar power plant being constructed. Fourth is the aspect again linked to value addition of production of sulphuric acid which will facilitate agricultural fertiliser production and import substitution.”

Chairman of the Parliamentary Portfolio Committee on Mines and Mining Development, Cde Edmond Mkaratigwa, said beneficiation and value addition of minerals before export is one of the four key pillars of Zimbabwe’s goal to create value, employment and accelerated industrial development from its largely unexploited mineral resources.

“We continue to urge companies to use the entire value chain and add value to the minerals which will culminate into the creation of more jobs and revenue for the fiscus.

“We are happy with the direction Zimplats is taking and we urge others in the sector to take a leaf,” said Cde Mkaratigwa.

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