adminissue of the timing and the modalities in which they have to do that.
“If you take the volumes we have today, they would not justify a refinery. But we are working with Government to see what are the expansion plans of company A,B,C . . . and when they are implemented at what stage the refinery will be set up,” he said.
According to Platinum Producers’ Association chairman Mr Herbert Mashanyare establishing a refinery would require about US$2,8 billion.
Mr Chitando said it was indisputable that, in principle, establishing a platinum refinery was inevitable as that would result in savings on toll fees and downstream benefits. It is against this background that the Chamber of Mines was engaged in discussions with Government to decide the production levels at which it makes economic sense to build a refinery.
According to the Chamber of Mines, Zimbabwe projects annual platinum production of 12 940kg this year.
“Without quoting names, one of the platinum producers has indicated its support and its plans to establish a (platinum) refinery,” he said.
“That is already the starting point. So, it is now a question of the companies liaising and working together to see what the issues are.”
Platinum mines get paid for the contained metal (Platinum Group of Metals) and the other minerals that may be contained. But the firms face a daunting task to raise
production levels considering the US$2,8 billion required for recapitalising operations. The entire mining sector needs US$5 billion to US$7 billion.
“In terms of additional revenue into the country, there is no additional revenue, but you are saving on toll treatment fees and the downstream benefits to the industries.”
He said mining companies supported beneficiation, which Mines and Mining Development Deputy Minister Gift Chimanikire said on Wednesday, was a Cabinet resolution on value adding minerals.
According to the Chamber of Mines, there should be a different beneficiation approach for each of the minerals mined in Zimbabwe.
“My view is that, as the chamber, we will take the initiative of suggesting to Government what we believe should be our suggested views on a mineral development policy, which will then come up with growth and beneficiation strategies for each mineral,” the Chamber of Mines boss said.
While the setting up of the platinum refinery would follow soon after building sufficient volumes, the refinery would require that electricity generation be increased significantly.
Zimbabwe has three major platinum mining firms — Zimplats, a unit of Implats; Mimosa Platinum, a joint venture between London-listed Aquarius Platinum; and Implats and Anglo American-owned Unki Platinum.
Online Reporter