Zimplats invests US$20m in new mines, beneficiation

PLATINUM group metals (PGM) producer, Zimplats Holdings, says it has spent US$270,3 million in the six months to June 30, 2022 on mine replacement and beneficiation projects, which remain largely on schedule.

In November last year, the mining company approved an overall capital investment strategy for the group with a budget of US$1,8 billion to be implemented over a 10 year period.

Zimplats, in its financials for the year ended June 30, 2022 said the development of Mupani Mine, a replacement mine for depleted Rukodzi Mine and Ngwarati Mine, which depletes in the financial year (FY) 2025, was progressing well and on schedule. It said that the upgrading of Mupani Mine from the current design capacity of 2,2 metric tons per annum (Mtpa) to 3,6Mtpa to replace part of the tonnage contribution from Mupfuti Mine on depletion in 2027 was approved, increasing the estimated total project cost from US$264 million to US$386,2 million.

“A total of US$44,1 was spent on this project during the year bringing the project to date expenditure to US$190,7 million. The mine is scheduled to reach production of 2.2Mtpa in September 2024 and full production of 3,6Mtpa in August 2028,” it said.

Zimplats noted that the upgrade of Bimha Mine from the current design capacity of 2,0Mtpa to 3,1Mtpa to replace part of the tonnage from Mupfuti Mine, which will deplete in FY2027 is progressing well and on schedule.

It said that a total of US$27,8 million was spent during the year bringing the total project to date expenditure to US$34,7 million.

“The upgraded Bimha Mine is expected to achieve full production of 3,1Mtpa in FY2023,” said Zimplats.

During the year under review, a total of US$64,7 million was spent on the Third Concentrator plant bringing the total project to date expenditure to US$79,3 million.

Zimplats said that the new concentrator plant with planned installed capacity of 0,9Mtpa, will mill ore generated from the optimisation of the Life of Mine through ramping up replacement mines production ahead of depletion of the mine being replaced.

“The project commenced in FY2021 and is on track for commissioning in the first quarter of FY2023,” said the company.

During the year, the board approved the construction of a new 38MW furnace and an acid plant at a total cost of US$520,6 million.

Zimplats said currently it is exporting part of its metal production in concentrate form as the existing smelter cannot process all the concentrate generated from the concentrators.

It said that commissioning of the Third Concentrator plant, which is currently under construction will increase the volume of concentrate produced from 144 000 tonnes to 163 000 tonnes per annum at 2,1 percent mass pull.

“The new furnace will increase smelting capacity from the current 135 000 tonnes of concentrate to 380 000 tonnes of concentrate.

“A total of US$18,5 million was spent in the year on the project and the project is on course for commissioning of the smelter in January 2024 and the acid plant in August 2024,” Zimplats said.

During the year under review, revenue decreased by 8 percent to US$1,2 billion from 2021’s US$1,4 billion primarily due to the decrease in the prevailing average US$ metal prices during the year.

Gross revenue per Six Elements (6E) ounces sold decreased to US$1 996 from FY2021’s US$2 493. However, 6E ounces sold increased by 15 percent to 623 000 ounces largely driven by the sale of converter matte produced and stockpiled in June 2021.

Cost of sales increased by 9 percent to US$594,3 million primarily due to the 15 percent increase in volumes sold. Volumes of mined ore at 7,1 million tonnes compared to FY2021 7,2 million tonnes were 1 percent lower than prior year driven mainly by production interruption at Mupfuti Mine during the transition to a new trackless mining equipment maintenance service provider.

Zimplats said that the lower production at Mupfuti Mine had a negative impact on head grade as the lost production was substituted with lower grade development ore from Mupani Mine. Production at Ngwarati Mine resumed on July 9 2021 following the stabilisation of the high wall and reconstruction of the mine access.

Rukodzi Mine closed operations in June 2022, and the teams were deployed to Bimha and Mupani mines.

Ngwarati and Mupani mines produced 50 percent and 25 percent better than the prior year respectively as full production resumed at Ngwarati Mine, and ore contribution from Mupani as the project ramped up production towards design capacity.

“Overall, the general ground conditions in the mines remained stable,” said Zimplats.

Ore milled for the year at 6,9 million tonnes increased by 1 percent due to improved running time and milling rate to compensate for the low feed grades.-herald