Zimplats sinks US$2,2bn over 20 years into expanding operations

A section of Zimplats processing plant at Selous. The platinum group metals producers said it has spent US$10 billion on procurement, mostly from local suppliers, over the past 20 years

Zimbabwe Platinum Mines Limited (Zimplats), the country’s largest platinum group metals (PGM), says it invested US$2,2 billion between 2002 and 2022 on mine expansion and maintaining operations.

Zimplats is currently implementing capital projects valued at more than US$1,8 billion to be implemented over the next 10 years.

The platinum mine operates five underground mines, which supply ore to three concentrator modules (two at Ngezi and the third one at Selous).

Production from the mining operations is processed by the three concentrators and further refined at the Selous Metallurgical Complex (SMC) where the smelter is located.

According to the company’s 2022 integrated annual report, a number of projects are currently underway and at different stages of implementation.

These include development of Mupani Mine, the replacement mine for Rukodzi in financial year 2022 and Ngwarati Mine in financial year 2025 and is ahead of schedule

The company has embarked on Phase 3A Ngezi Third Concentrator plant at a cost of US$104 million with nameplate capacity of 0,9 metric-tonnes per annum and the project is scheduled for commissioning in first quarter financial year 2023.

It said implementation of SMC Concentrator TSF (Tailings Storage Facility) Project to sustain the operation at the termination of the existing TSF when it reaches its maximum design height of 43m is currently ongoing.

Overall, Zimplats said in the last 20 years it utilised US$10 billion with procurement costs accounting for 39 percent of the utilised funds at US$3,9 billion.

Employment costs amounted to US$878 million, a 9 percent, dividends paid to Zimplats Holdings Limited US$739 million, an 8 percent and loan principal and interest payments valued at US$510 million, which is 5 percent.

The platinum company has also been a major source of Government revenues. During the period, payments to the Government through income tax, additional profits tax, royalty, customs duties, pay-as-you-earn and withholding tax amounted to US$1,7 billion.

In terms of operations, Zimplats said that Ngwarati Mine resumed operations on July 9, 2021 following the stabilisation of the highwall and reconstruction of the mine access.

Overall production for the year, at 7 061 320 tonnes, was 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.

The Group spent a total of US$270,3 million on capital projects during the year, an increase of 70 percent from the US$159,1 million spent in FY2021.

“This increase is commensurate with the group’s expansion and environmental, social and governance (ESG) drive through the replacement of depleting mines, establishment of a new concentrator plant, construction of a bigger 38MW furnace and an SO2 abatement plant.

“This expenditure is part of a broader capital investment strategy with a US$1,8 billion budget that will be implemented over a 10-year period. We are excited to report that the various projects have created opportunities for local employment,” it said.

The company said the value of expansion projects nearly trebled from US$28,3 million in financial year 2021 to US$83,7 million in financial 2022, primarily due to spending on the Ngezi Third Concentrator plant, as well as the smelter expansion and SO2 abatement projects.-chroncile.cl.zw