Zimplats continues expansion drive

IMPALA’S Zimbabwe unit, Zimplats, has continued its expansion drive in the country, despite land takeover threats and requirements that they build smelters in double quick time.

Zimplats said it would invest in the redevelopment of its Bimha mine, which collapsed in 2014 but was likely to be back in full production by December next year.

“The redevelopment of Bimha Mine remains on schedule to reach full production in April 2018. A total of US$24 million (R324.42m) had been spent on the project as at December 31, 2016, against an approved total project budget of $92m,” Zimplats said.

The Bimha mine, which is Zimplats’ biggest operation in the country, accounts for nearly half of its production.

Officials said the board had given the green-light for the development of a new replacement mine, Mupani, which would be completed in 2025 at a cost of $264m.

The company’s expansion drive comes as fears increase over the government’s new land takeover plans.

Fresh notice

Last month the government issued a fresh notice that it would takeover about 28 000 hectares of land claims from Zimplats. Mining executives say companies usually keep some land for expansion.

But Mines Minister Walter Chidakwa charged that some companies were keeping idle mineral claims for “speculative” purposes. Zimbabwe has since adopted a “use it or lose it” policy for land claims.

Zimplats yesterday said it now had about 13 days to object to the takeover bid.

“The new notice has repealed all previous notices issued by the Government of Zimbabwe in respect of its proposed compulsory acquisition of this portion of the operating subsidiary’s mining lease area,” Zimplats said.

The company said it had been given “30 days to lodge an objection to the proposed compulsory acquisition” and that it was engaging authorities on the matter.

Zimplats’ revenue for the quarter period to the end of December increased by 41 percent to $139m compared to the previous quarter.

Operating profits after royalty payments for the period surged 28 percent to $20.6m after royalty payment of $3.4m. Operating costs jumped by 44 percent in comparison to the previous quarter.