Zim­plats per­ma­nent em­ploy­ees in­crease 5%

Chronicle (Zimbabwe) - - Front Page - Oliver Kazunga

ZIM­BABWE’S big­gest plat­inum pro­ducer, Zim­plats says the num­ber of its per­ma­nent work­ers in­creased by five per­cent to 3 198 last year an­chored on the re­sourc­ing of the Bimha Mine project dur­ing the pe­riod.

In Novem­ber last year, the plat­inum miner an­nounced that it had spent $72 mil­lion of the $101 mil­lion set aside for the rede­vel­op­ment of Bimha Mine which col­lapsed in 2014.

Ac­cord­ing to the min­ing gi­ant’s an­nual re­port for 2018, the chief ex­ec­u­tive of­fi­cer Mr Alex Mhem­bere said:

“The num­ber of per­ma­nent em­ploy­ees in­creased by five per­cent from 3 053 to 3 198 as the min­ing divi­sion re­sourced Bimha Mine which ramped up pro­duc­tion to de­sign ca­pac­ity dur­ing the year.”

Dur­ing the year un­der re­view, the num­ber of con­trac­tor em­ploy­ees in­creased by 12 per­cent from 2 878 to 3 231 due to in­creased ac­tiv­ity at the Mu­pani Mine project.

“Staff turnover de­te­ri­o­rated from 3,1 per­cent in 2017 fi­nan­cial year to four per­cent in 2018 mainly due to an in­crease in ill-health re­tire­ment cases.

“How­ever, the staff turnover was within the limit for the year,” said Mr Mhem­bere, ad­ding that the group’s in­dus­trial re­la­tions for the year were sta­ble.

On so­cial in­vest­ment, the plat­inum min­ing firm last year spent $6 mil­lion com­pared to $2,2 mil­lion in 2017.

The so­cial de­vel­op­ment projects un­der­taken en­com­passed fa­cil­i­ties for sports, ed­u­ca­tion, health, live­stock, local en­ter­prise de­vel­op­ment and in­come gen­er­at­ing projects.

In the year un­der re­view, Zim­plats’ local pro­cure­ment per­cent­age de­creased from 72 per­cent in 2017 to 69 per­cent last year.

De­spite the de­crease in the local pro­cure­ment per­cent­age, Mr Mhem­bere said the group re­mains com­mit­ted to con­tribut­ing to­wards the re­sus­ci­ta­tion of the Zim­bab­wean econ­omy and the de­vel­op­ment of local en­ter­prises.

In the past, the Gov­ern­ment has chal­lenged min­ing com­pa­nies to source their sup­plies from local firms and only con­sider im­ports if local sup­pli­ers were not able to sup­ply the spec­i­fied goods or ser­vices.

In the year un­der re­view, rev­enue in­creased by 14 per­cent from $512,5 mil­lion in 2017 to $582,5 mil­lion de­spite the two per­cent de­crease in 4E sales vol­umes from 555 892 ounces to 542 085oz.

This was due to the in­crease in av­er­age prices of pal­la­dium, nickel, rhodium and cop­per which re­sulted in a 17 per­cent in­crease in gross rev­enue per plat­inum ounce from $1 868 to $2 184.

Cost of sales marginally in­creased from $367,1 mil­lion in 2017 to $368 mil­lion.

Gross profit mar­gins for the pe­riod im­proved from 28 per­cent in 2017 to 37 per­cent last year mainly due to the im­prove­ment in av­er­age me­tal prices achieved.

Op­er­at­ing cash costs per plat­inum ounce in­creased by five per­cent from $1 225 in 2017 to $1 290 in last year due to a 4 per­cent de­crease in plat­inum pro­duced (in­clud­ing me­tal in con­cen­trate sold), in­crease in em­ployee ben­e­fit ex­penses and in­crease in prices of con­sum­ables. — @okazunga

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