CLOUDINE MATOLA
Zimplats, the biggest platinum producer in Zimbabwe, is going forward with a US$1.8 billion capital expenditure project in spite of declining global prices for the metal, Business Times can report.
The mining sector has been struggling financially since last year as a result of the decline in the price of platinum group metals (PGMs).
However, the platinum producer proceeds with all of its significant capital projects in spite of these obstacles.
According to the company’s quarterly report for the period ended December 31 2023, all their projects are progressing as planned.
Some of the projects include smelter expansion, construction of an additional concentrator and setting a solar power plant among others.
The Mine development and upgrade of Bimha and Mupani will replace production from Rukodzi Mine which was depleted in FY2022, and that from Ngwarati and Mupfuti mines, which will be depleted in FY2025 and FY2028,respectively.
The initiative has so far cost the corporation US$368m.
“Cumulatively, US$368m has been spent on these projects, with an additional US$51m committed, against a total project budget of US$468m,” reads part of the report.
Also, US$220m has been spent on the smelter expansion and SO2 abatement plant project, with a further US$187m committed against a total project budget of US$521m.
A total of US$1m has been spent on the implementation of the 35MW solar plant project to date, with US$35m committed as at December 31 2023, against a budget of US$37m.
This is the first of the project’s four phases, which will be implemented at an estimated total cost of US$201m to generate 185MW.
In addition, US$18m has been spent on the execution of the Base Metal Refinery refurbishment project to date, with a further US$16m committed, against a total budget of US$190m as at December 31 2023.
However, the company said cost containment initiatives, in response to softening metal prices, were implemented in the period, and resulted in a 1% retracement in total operating cash costs from the prior quarter, with the year-on-year increase of 3%.
Transfers to closing stocks from operating costs amounted to US$0.4m during the period, in line with inventory movement in the value chain.
Cash costs of metal produced declined by 1% from the prior quarter and were stable year-on-year.
