Zimplats matte production surges

IMPALA Platinum Holdings Limited (Implats), one of the world’s leading producers of platinum group metals (PGMs), says its Zimbabwean operation Zimplats delivered a six percent increase in six element (6E) matte production to 646 000 ounces in the full year to June 30, 2024, benefiting from an increase in annual milling capacity.

The 6E are platinum, palladium, rhodium, ruthenium, iridium and gold. The solid performance was driven by a 5,5 percent increase in milling volumes to 7,912 million tonnes, offsetting a marginal 0,3 percent decline in 6E grades.

Zimplats’ contribution to Implats’ overall 6E production increased to 17,7 percent in the 2024 financial year, up from 16,8 percent in the prior period.

According to Implats, Zimplats remain central to its growth strategy, with the company continuing to invest in expansion projects at the operation.

“As Implats navigates the headwinds facing the broader PGM industry, Zimplats’ consistent performance will be crucial in supporting the group’s overall operational and financial resilience,” reads the trading statement.

According to Zimplat’s quarterly production report for March 31, 2024, the platinum producer has a number of capital projects under execution under a US$1,8 billion investment plan.

These include the 35-megawatt solar plant project, which is aimed at augmenting grid supply.

Zimplats

Zimplats plans phased implementation of the project until it reaches target production of 185mw by around 2028, when current projects include the expansion of the smelter, concentrator and other mine extensions.

The solar plant sits on 109 hectares with over 10 000 PV solar panels, which have a yield of 550 Watts per square metre and six inverters.

In other projects, Zimplats is developing the Bimha and Mupani mines, the upgrade projects that will replace production from Rukodzi Mine, which was depleted in FY2022 and Ngwarati and Mupfuti mines, which will be depleted in FY2025 and FY2028, respectively.

As of March 31, 2024, cumulatively, US$395 million was spent on these projects against a total project budget of US$468 million. The group also spent a total of US$27 million on the execution of the Base Metal Refinery refurbishment project, against a total budget of US$190 million.

Zimplats said that in light of the softer metal pricing environment on global markets, the group implemented various cash preservation measures, which include labour rationalisation and capital project re-scheduling.

According to Implats, the cash capital expenditure of R12,3 billion was incurred in FY2024 and a further R1,7 billion of capital payments, primarily associated with Zimplats’ growth projects and incurred in the prior period, was transferred from prepayments to capital expenditure in the period.

Overall, Implats said it navigated several serious challenges and a constrained operating environment to deliver guided production volumes and commendable cost controls in FY2024.

Gross group 6E production increased by 13 percent to 3,65 million 6E ounces from 3,25 million 6E ounces for the year ended June 30, 2023 with a one percent decline in like-for-like production.

Production from managed operations increased by 21 percent to 2,92 million 6E ounces, with a like-for-like improvement of two percent from the collective production base at Impala Rustenburg, Marula, Zimplats and Impala Canada.-chronicle