Zimbabwe has launched an ambitious target for the mining sector which is expected to generate US$12bn by 2023.
The platinum sector is expected to contribute US$3bn to the haul.
One of the new entrants into the sector Bravura is in the exploration stage after signing an agreement with government to invest in the sector last year.
Our Acting Editor Ndamu Sandu (NS) speaks to Bravura’s country director Lionel Mhlanga (LM) on the progress made to date and the company’s plans for the multi-billion dollar sector.
Find excerpts below.
NS: How far has the company gone in terms of exploration?
LM: We have just passed the 5km mark of core drilling.
NS: When do you think exploration would have been completed?
LM: We have 3 phases of Exploration split into 15 kilometres each; the first phase should be completed early next year.
NS: Do you have timeframes for the two phases in terms of exploration?
LM: We hope to complete phase 2 in 6 months and phase 3 in the subsequent 6 months.
NS: How much have you set aside for exploration and the source of the funds.
LM: The project full roll out budget is US$1billion, we are drawing down from that.
For the exploration stages, the funding is coming from the Holding company’s other existing operations.
NS: How was the exploration affected by the Covid-19 pandemic?
LM: Covid-19 has affected the entire industry. Supply chain if equipment, spares and consumables has been affected.
The movement of our overseas based partner competent personnel who are responsible for overseeing various technical aspects has also been affected.
NS: When will mining start at the project?
LM: The mining will commence upon satisfactory completion of resource definition and confirmation exercises currently under way.
NS: Mining houses have in the past complained of power cuts despite having prepaid for electricity and in foreign currency. What are your plans to ensure that the mine has electricity 24/7?
LM: We are aware of various power supplementation projects the Government of Zimbabwe is currently embarking on, alternative forms of power supply such as LNG and solar are also being considered.
NS: How much in terms of staff complement will the project have at full throttle?
LM: The various stages of project rollout such as mine development and construction, value addition facilities will result in increased labour requirements.
NS: You spoke of value addition facilities. Does it mean you won’t be taking concentrate but matte to South African for refining?
LM: The value addition plans will dovetail with existing processing facilities locally and the region. Our plans are to produce matte.
NS: Are you in talk with other PGM players in Zimbabwe to invest in facilities in which everything is done in Zimbabwe?
LM: We are currently at exploration phase to determine the viability of the resource in our claims.
We will at the right time discuss value addition plans with other sectors in the country; we wish to complement any efforts that other platinum miners in the country also subscribe to.
NS: The mining sector gets 70% of proceeds in foreign currency and 30% at the auction rate but pays taxes and levies 100% in foreign currency. As a business how do you strike a balance on the matter?
LM: The company belongs to the Chamber of Mines and will continue to utilise this platform to engage with monetary authorities for the attainment of sustainable policies for the industry as a whole.
