Zimplats says US$1,8bn projects on course

ZIMBABWE’S largest platinum producer, Zimplats, says all major capital projects under execution are progressing according to plan as the platinum mining group seeks to expand capacity.

Under its US$1,8 billion capital expenditure investment, Zimplats’s strategy involves the setting up integrated projects, including the development of new mines, expansion of the smelter, construction of an additional concentrator, base metal refinery, sulphuric acid plant, and the setting up of a 110 megawatt (MW) solar power plant.

The group, in its quarterly update for the period to December 31, 2023, said the mine development and upgrade projects (Bimha and Mupani mines) will replace production from Rukodzi Mine, which was depleted in the financial year 2022, and that from Ngwarati and Mupfuti mines, which will be depleted in FY2025 and FY2028, respectively.

“Cumulatively, US$368 million has been spent on these projects, with an additional US$51 million committed, against a total project budget of US$468 million,” the company said.

The group noted that US$220 million has been spent on the smelter expansion and sulfur dioxide (SO2) abatement plant project, with a further US$187 million committed against a total project budget of US$521 million.

Zimplats is also constructing a solar power plant in phases to provide power supplies as the company expands its mine capacity.

The company said US$1 million has been spent on the implementation of the 35 MW solar plant project to date, with US$35 million committed as of December 31, 2023, against a budget of US$37 million.

“This is the first of the project’s four phases, which will be implemented at an estimated total cost of US$201 million to generate 185 MW,” it said.

Zimplats said US$18 million had been spent on the execution of the Base Metal Refinery refurbishment project to date, with a further US$16 million committed, against a total budget of US$190 million as of December 2023.

According to the update, Zimplats said containment initiatives, in response to softening metal prices, were implemented in the period under review and this resulted in a 1 percent retracement in total operating cash costs from the prior quarter, with a year-onyear increase of 3 percent.

The company said transfers to closing stocks from operating costs amounted to US$0,4 million during the period, in line with inventory movement in the value chain.

During the quarter under review, the company said cash costs for metal produced declined by 1 percent from the prior quarter and were stable year-on-year.

On the other hand, operating cash costs of US$825 per 6E ounce retreated by 1 percent from the prior quarter and were 2 percent lower year-on-year, benefiting from higher production volumes, which offset inflationary pressures on utilities.

During the quarter under review, the company said mining volumes benefited from pillar reclamation operations at Rukodzi Mine and the continued ramp-up in production at Mupani Mine, which is under development.

“This resulted in ore mined increasing by 1 percent and 4 percent from the prior quarter and prior year’s comparable period, respectively,” reads the update.

It noted that increased tonnes from pillar reclamation bolstered 6E head grade, which increased by 1 percent from the prior quarter and was stable year-on-year.

The company said ore milled was in line with mined volumes in the period and was stable quarter-on-quarter and year-on-year, with the concentrator plants performing at expected throughput rates.

During the quarter under review, 6E metal in the final product declined by 1 percent from the prior quarter, as a scheduled furnace shutdown resulted in an accumulation of in-process inventory in the period.

“Metal volumes benefited from improved metal recoveries and increased by 1 percent year-on-year.”