adminDosman Mangisi
Mining Correspondent
FALLING global metal prices and the economic slowdown in China will continue to weigh down operations of platinum mining firms in the country, the Zimbabwe Chamber of Mines has warned.In a presentation during a macro-economic framework for national budget 2016 workshop in Kadoma on Monday, the chamber said developments on the international market were dampening prospects of quick recovery. Zimbabwe has three dominant platinum mining companies Zimplats, which operates in the Hartley platinum fields, Unki Mine that operates at Selukwe block and Mimosa in the Hwedza platinum fields.
“Platinum miners are expected to remain in a continued depression of the metal commodity mainly in China, the biggest player of metal commodities.
“The global price crisis has already given a negative impact on platinum production, which has since decreased since 2013,” reads part of the chambers’ report.
“From the outlook prices are expected to remain weak for a prolonged period, posing operational challenges.
“The government should also relook into some of its measures, which have emerged to become a challenge on the mineral.”
Platinum production dropped by 13.6 percent as of the first quarter of 2015, statistics indicate.
The production of the metal was 5,562 kgs, 15 percent lower than the first quarter of 2014, according to the chamber.
The closure of Bimha mine sometime last year by Zimplats negatively impacted on the production of platinum in the country. Despite the challenges, Zimplats remains the biggest platinum miner locally and is expected to increase production in 2016 to manage the viability in the sector.
Platinum is currently trading at $953,00 per ounce as of the opening of this week. The price of the metal falls from time to time according to its trading history.
In September 2010 the mineral traded at $1,901 per ounce.
The platinum subsector has appealed to the government to relax some of its mining taxes in light of the infrastructure deficit and erratic power supplies to facilitate growth. The government has since revised the 15 percent tax it had placed on the export of raw platinum.
The platinum mining sector, meanwhile, is building base metal smelters locally with Zimplats already working on one while Unki has already procured the smelter and is working on site planning with the project set to be operational by 2018.
Zimplats is also working on Ngezi II project expansion that is expected to increase production in 2016.
Online Reporter