Mine embarks on plant optimisation exercise
GOVERNMENT has commended Zvishavane-based platinum group metals (PGM) mining company, Mimosa, for embarking on a plant optimisation exercise and taking strategic decisions to ensure that none of its employees are laid off in the face of depressed metal prices.
The PGM market, which is crucial for automotive catalysts, has witnessed a significant downturn this year with platinum prices experiencing a 15 percent decrease, leading to Mimosa putting on hold the implementation of the North Hill project to extend the mine life by a further 12 years.
Palladium, a key component for emission control, has also seen a sharp decline from a peak of above US$3 000 in March 2022, to trade at around US$1 127 per ounce.
Additionally, rhodium, a scarce and corrosion-resistant PGM, reached a peak of nearly US$30 000 per ounce in 2021, but is presently trading at approximately US$4 500. A dip in automotive production, especially in the US, has hurt platinum demand.
Analysts expect platinum and palladium prices to decline in 2024 as automotive production slows down. Both metals are used in the car industry to reduce exhaust fumes, while platinum is additionally used in other industries and as a precious metal.
In a move to navigate the challenges posed by the current downturn in metal prices, Mimosa has allocated a substantial investment of up to US$75 million towards the construction of a new Tailing Storage Facility, TSF 4.
The financial commitment underscores the company’s dedication to responsible waste disposal and optimising its existing operations at South Hill.
Addressing members of the media after a tour of Mimosa’s TSF 4, which is under construction and Corporate Social Responsibility projects, including support for the Mberengwa District Hospital infrastructure development, Deputy Minister of Mines and Mining Development, Engineer Polite Kambamura, applauded Mimosa for its strategic measures amidst the challenges of fluctuating global metal prices.
Deputy Minister Polite Kambamura being shown TTSF 4 under construction by Mr Ndiyamba
He lauded the miner for avoiding drastic measures like employee layoffs despite the challenging global metal prices and optimising its plant to ensure continued viability, saying the putting on hold of the North Hill project was in the right decision.
“It’s a fact that internationally PGM metal prices are depressed and mining companies elsewhere are laying off workers. But instead of laying down or off employees, Mimosa has gone further to try and find means of sustainable mining with one of them being increasing the efficiency of the plant,” said Eng Kambamura.
“They have also embarked on an intensive exploration of North Hill, which has been put under hold. That project will add a further 12 years’ lifespan when implemented.
“They are also constructing a tailings dam with a capacity to handle 110 million tonnes of tailings. Under these conditions, putting on hold North Hill expansion is wise and understandable.”
The Deputy Minister said the good thing was that Mimosa has already done exploration, which as soon as prices stabilise will add 12 years to the life of mine.
“We are much-excited and impressed with what Mimosa is doing at the moment,” he said.
The company has also been investing in corporate social responsibility programmes in Zvishavane, Mberengwa and other places across the country covering areas such as education, health and other community development programmes.
“The mine has about 3 800 employees including contractors with most of these employees engaged from the local communities. They are also empowering local communities through CSR,” said Eng Kambamura.
“This is what we want to see from mining companies in line with the Africa Mining Vision where communities are supposed to benefit from minerals found in their areas. The future of this community is bright considering that Mimosa has partnered the Government in its philosophy of leaving no place and no one behind in line with Vision 2030,” he said.
Mimosa general manager, Mr Stephen Ndiyamba, highlighted the company’s focus on retaining staff and enhancing efficiencies.
“The challenge of low metal prices, our focus has been to maximise operations on South Hill. What that means is we are looking at how we can improve our efficiencies so that we are more productive, and how we can utilise technology to improve again efficiencies,” he said. “Basically, we want to produce more from little so that we bring our cost of production down and we remain viable so that we are able to ride this current wave of low metal prices.
“We want to ensure that we protect jobs. We should be able to optimise our current processes and business so that we don’t lay of people,” said Mr Ndiyamba.
He said Mimosa is committed to sustaining investments in Zimbabwe, fostering mutually beneficial relationships, and leaving enduring legacies.
Jointly owned by South Africa’s Sibanye-Stillwater and Impala Platinum, Mimosa operates on the southern portion of the Great Dyke near Zvishavane town and currently mines and processes 2.8 million tonnes of ore to produce 120 000 ounces of platinum or 240 000 ounces of 4Es (Platinum, Palladium, Rhodium, Gold) annually.
The mine produces a concentrate that contains a total of 10 metals (platinum, gold, palladium, rhodium, ruthenium, iridium, nickel, copper, cobalt, silver).
Due to the depressed metal prices, Mimosa has taken a strategic decision to put on hold the North Hill project as part of cost containment measures to ensure viability. The mine, however, says it remains committed to investing in Zimbabwe and will periodically review the possible implementation of the North Hill project.-chronicle
