New Zim platinum smelter considered

ANGLO American Platinum’s Zimbabwe unit Unki said yesterday it was considering either building a new smelter or expanding facilities at larger rival Zimplats.

President Robert Mugabe’s government last week suspended a 15 percent tax on raw platinum exports after mining companies committed to building smelters and refineries.

“These efforts are part of the solution agreed with the government which have resulted in the suspension of the 15 percent tax,” Colin Chibafa, Unki Mines chief financial officer, said.

Unki is the smallest of three platinum mines in Zimbabwe and has previously said it would take two years to build a smelter.

Mines in Zimbabwe send platinum group metal concentrates for refining to South Africa, but the government wants the process to be done locally.

Platinum was the largest mineral export in Zimbabwe last year, and the nation holds the world’s second-largest reserves of platinum.

Chibafa said the company was considering “a green fields smelter at Unki, using some of the equipment that Anglo American Platinum has available.” The equipment was initially set for constructing other furnace projects at Amplats mines in South Africa, he said.

Chibafa said Unki was also looking at the possibility of expanding the smelter facilities at rival Zimplats, Zimbabwe’s largest platinum mine, which is majority-owned by Impala Platinum Holdings.

The second plan would also see the Zimplats smelter processing platinum from Mimosa Mines, a 50-50 joint venture between Implats and Aquarius Platinum. – Reuters