Zimplats gets $6.6m export incentive
IMPALA Platinum’s Zimbabwe unit, Zimplats, yesterday said it had received a $6.6 million (R86.4m) export incentive from the government.
The mining company said during its half-year results to end-December that it benefited from the government injection, but warned that its future in the country remained uncertain.
The incentive for export receipts and the repayment of the central bank loan drove Zimplats’ after tax profits to $16.2m compared to a $0.6m loss the company recorded during the corresponding period last year.
The company recorded a 21 percent increase in revenue while production surged four percent to 135 824 ounces.
It said sales volumes also increased 4 percent to 133 937 ounces and royalty and commission expenses increased 16 percent from $5.1m last year to $5.9m.
Zimplats said it was re-developing the collapsed Bimha mine and building a new replacement mine to benefit from an expected recovery in precious metal prices.
“The half-year ended December 31 benefited from an export incentive of $6.6m,” said chief executive Alex Mhembere.
Zimplats also confirmed that it had launched an objection to the government’s regazetted plans to take over nearly 28 000 hectares of land claims. “The operating subsidiary lodged an objection to the proposed compulsory acquisition of (Zimplats land),” said Mhembere. However, he added that the company was engaging the government over this, although two chrome miners have already agreed to give away half of their land claims to the government under the same policy.
For Zimplats, however, it has been a case of mixed fortunes, with the company also receiving treasury bills for debts owed by the central bank. The government issued the treasury bills worth $34m in settlement of amounts the company is owed by the central bank.