Zimplats commences US$520m expansion
MINING giant Zimplats says its US$521 million smelter expansion and sulphur dioxide abatement projects have commenced and commitments for major contracts were made during the first quarter of this year.
The project includes construction of a 38-megawatt (MW) furnace and an acid plant for the abatement of sulphur dioxide generated by smelter operations, Zimplats said in a quarterly report for the period ended March 31 2022.
It said implementation of the 185MW solar project received board approval during the quarter.
“The 35MW Phase 1 plant at Selous Metallurgical Complex is scheduled for completion in FY2024 (financial year). In total, the project has four implementation phases with the final phase scheduled for completion in FY2027 at an estimated total project cost of US$201 million,” the report read in part.
It said the implementation of the Mupani Mine development project, the upgrade of Bimha Mine and the construction of the third concentrator plant progressed according to plan during the quarter, with a cumulative project expenditure of US$241 million incurred and commitments of US$130 million at period end, versus a combined budget of US$562 million.
Mupani and Bimha mines will replace Rukodzi, Ngwarati and Mupfuti shafts which will be depleted in 2022, 2025 and 2028, respectively.
Zimplats said the third concentrator would increase milling capacity by 0,9 million tonnes per year and is expected to be commissioned in August next year.
In the period under review, a total of US$0,9 million was spent on exploration projects, with a further US$1,8 million committed.
"Exploration activities included mineral resource evaluation, comprising approximately 5 740 metres of surface diamond drilling over existing projects on the two mining leases. Exploration activities increased geological and geotechnical confidence in production schedules," the mining company said.
Total operating cash costs increased by 3% from the prior quarter, impacted by inflation on major production inputs. The report shows that a total of US$4,3 million was transferred from opening stocks to operating costs during the period as a result of the smelting of concentrates stockpiled during the routine furnace taphole inspection shutdown in the prior quarter.
This resulted in the cost of metal produced rising by 8% versus the prior quarter. Volume gains partly offset inflationary pressures and resulted in 2% increase in unit cost from US$735 per ounce (oz) to US$752/ oz. Year-on-year unit cost increase of 6% reflected the mitigating benefit of higher production volumes on the 15% cost increase, the company said.
Mined volumes improved by 2% quarter-on-quarter and were 2% weaker year-on-year. The year-onyear decrease was mainly due to lower trackless mining equipment availability at Mupfuti Mine during the current quarter which has since been addressed. The new trackless equipment maintenance service provider has now scaled up operations to optimum level, it said.
Milled tonnes decreased marginally to 1,71 million tonnes due to fewer operating days than in the prior quarter. Milled volumes were, however, stable year-on-year. 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) metal in final product increased by 6% to 148 541 oz from the prior quarter and increased by 8% year-on-year.
Production benefited from a positive smelter inventory movement and the treatment of concentrates stockpiled during the furnace shutdown in the prior quarter.