Business Writer
HARARE – Anglo American Platinum’s Unki Mine is on course to commission its smelter in the third quarter of 2018 on the back of a record 9 percent increase in production to 92 600 ounces in the first half of the year.
The smelter project came on the backdrop of a proposed 15 percent by Government on all platinum miners. The tax was supposed to come into effect in January 2015 but was pushed to 2018 to allow the miners time to set up the beneficiation facilities.
The setting up of the smelter by Unki will enable the company to begin partial processing of ore in the country before sending to South Africa for refining.
“Unki mine in Zimbabwe produced a record 92 600 PGM ounces, an increase of 9 percent. The Unki smelter, a project in execution, is expected to be completed in Q3 2018,” Angloplat said.
Platinum production by the Shurugwi based miner increased 8 percent to 41 400 ounces from 38 400 ounces of the first half of 2017 and palladium production increased 10 percent to 36 200 ounces from 33 000 ounces of the comparable period.
Angloplat said production at Unki increased due to an increase in tonnes milled, up 6 percent due to improved throughput and recovery. The 4E built-up head grade stayed relatively flat at 3,47 grammes per tonne compared to 3,48 grammes per tonnes of the comparative period.
During the period under review, Unki increased economic free cash flow to R311 million from R85 million due to improved performance and the sale of treasury bills of R100 million.
On group level, Anglo American Platinum saw a strong performance from its operations, with the world-class Mogalakwena operation increasing production 19 percent in the first half of 2018.
Mogalakwena contributed R2,1 billion in economic free cash flow, up from R812 million in the first half and remains the world’s most significant PGM operation and the only major PGM open-pit operation globally.
Angloplat said the turnaround plan at Amandelbult continues, showing early benefits: total PGM production at Amandelbult increased by 9 percent to 432 600 PGM ounces.
The global platinum miner said it remains focused on the next phase of growth by simplifying its portfolio and building a platform for future value.
During the period under review, the platinum group launched the new AP Ventures fund in conjunction with the Public Investment Corporation, which together have committed funds of $200m to grow demand for PGMs.
