Platinum producer Zimplats has spent US$36 million towards reviving its Base Metal Refinery at its Selous Metallurgical Complex, 80 kilometres southwest of Harare, to enhance beneficiation and value addition.
A BMR is a critical component in the processing of Platinum Group Metals (PGMs), acting as the bridge between extractive smelting and the final precious metal purification.
Zimbabwe’s PGM matte sales generated US$1,5 billion in 2025, representing a 71 percent increase in value compared to the previous year.Made in Zimbabwe branding
This strong performance was driven by a 26 percent rise in the PGM basket price, improved operational efficiencies and a shift towards local beneficiation (producing matte rather than just concentrates).
Platinum is Zimbabwe’s second-largest export earner after gold, which earned the country over US$4 billion after production reached a record 46,7 tonnes.
Zimbabwe’s mineral exports (excluding gold and silver) generated US$3,4 billion in 2025, a 14 percent increase from 2024, according to the Minerals Marketing Corporation of Zimbabwe (MMCZ).
Mining is Zimbabwe’s largest source of foreign currency, accounting for over 70 percent of export earnings, while it contributes an estimated 12-16 percent of the country’s gross domestic product.
Zimplats’ BMR is being reengineered to process 5 200 tonnes of nickel and associated base metals, separating base metals such as nickel, copper and chrome from platinum group metals.
Outdated technology rendered the facility expensive to operate in its current form, hence refurbishment.
The Zimplats Base Metal Refinery (BMR) at the Selous Metallurgical Complex (SMC) was suspended around 1999 due to severe cash constraints caused by falling platinum prices.
This refurbishment is part of a broader US$1,8 billion expansion to expand processing capacity and reduce reliance on overseas refining.
In conjunction with the BMR, Zimplats investment has tripled its smelting capacity to 380 000 tonnes of concentrate per year.
Once the base metal refinery is fully operational, Zimplats plans to move towards a precious metal refinery.
The country’s biggest platinum miner has already allocated US$1,1 billion of its 10-year investment plan, which runs through 2031.
This facility was forecast to be commissioned towards the beginning of the 2027 financial year.
Zimplats exports platinum matte to South Africa for further processing, which deprives Zimbabwe of potential revenue streams, foreign currency inflows and employment opportunities.Made in Zimbabwe branding
The revival of the BMR aligns with Government policy thrusts promoting mineral beneficiation, including PGMs, diamonds, gold and chrome, to unlock greater value from the country’s finite mineral resources.
Beneficiation has been identified as crucial to Zimbabwe’s ambition to attain upper-middle-income economy status by 2030, with policymakers seeking to curb raw mineral exports and promote in-country processing.
“The refurbishment of the mothballed BMR at SMC was deferred to outside the current five-year business plan. The BMR targets a capacity of 5 200 tonnes of nickel equivalent to current production volumes.
“As of December 31, 2025, US$36 million had been spent on the project, against a project budget of US$190 million,” said Zimplats chief executive officer Mr Alex Mhembere in the company’s half-year financials to December 2025.
This comes after Zimplats recorded improved operational and financial performance in the half-year under review.
Mined volumes grew by 7,69 percent to 4,2 million tonnes from 3,9 million tonnes in the comparable period last year, supported by improved availability of trackless mobile machinery (TMM), productivity enhancement initiatives and the resuscitation of the open pit mine.
Tonnes milled increased by five percent to four million tonnes from 3,8 million tonnes, aided by fewer mill reline shutdowns.
Despite this, the mill head grade for the six elements (6E — platinum, palladium, rhodium, gold, ruthenium and iridium) marginally declined to 3,30 grammes per tonne from 3,38 per grammes per tonne due to below-budget head grade.
Nevertheless, 6E metal production surged 13 percent to 316 765 ounces, buoyed by stronger concentrator output.
In the prior period, output had been constrained as the expanded furnace was still ramping up, resulting in accumulated concentrate stocks.
Zimplats posted revenue of US$641,8 million for the six months to December 2025, representing an 83 percent increase compared to the same period last year.
The growth was driven by a 66 percent rise in average metal prices, resulting in gross revenue of US$2 080 per 6E ounce sold, up from US$1 252 in the prior comparable period, while sales volumes also increased to 308 598 ounces from 279 740 ounces.
Cost of sales rose 31 percent to US$425 million from US$323,4 million, reflecting higher labour costs, expenses related to open pit operations, increased equipment maintenance and higher royalties in line with revenue growth.
Profit before income tax jumped 2 185 percent to US$203,4 million, up from US$8,9 million in the comparable period.
After accounting for an income tax charge of US$59,7 million, profit after tax stood at US$143,7 million, a sharp turnaround from US$4,1 million recorded previously.
Despite the strong performance, the company did not declare an interim dividend for the half-year ended 31 December 2025, opting to preserve capital as it advances strategic projects.
Successful completion of the BMR upgrade could mark a turning point for Zimbabwe’s platinum sector, anchoring domestic value addition and enhancing the country’s share of the global PGM value chain.-herald
