GDI seeks Govt backing

Business Reporters

GREAT Dyke Investments requires Government to guarantee supplies of platinum from other producers before investing an estimated $2 billion towards constructing a precious metal refinery. GDI is in the process developing its mines in Darwendale and expects to start production of platinum group metals by first quarter of 2018.But it said since it cannot export neither matte nor concentrate to Russia, it fully supports Government policy on beneficiation and value addition of the country’s primary commodities to realise optimum returns, as opposed to raw exports.

The company said the economics of investing in a platinum refinery plant mean that even after the last phase of the current three phase development plans, GDI cannot justify a $2 billion investment on the basis of its output alone.

A total $600 million will be invested in the first phase 2014 to 2018, $940 million from 2019 to 2022 (output 510oz) and finally $560 million between 2023 and 2025 (output 765 000oz). A total of $4,2 billion will be invested over the next 10 years.

Chief operating officer Mr Munetsi Shava said Government needed to make the decision earlier to enable GDI to make the proposals as to when it can start to build the platinum refinery.

“We cannot export matte or concentrate to Russia, we have to beneficiate and value add as much as is possible. In terms of the refinery, GDI alone cannot produce to feed that.

“That policy decision has to be made as soon as possible so that GDI can start the proposal to build the refinery. Government has to guarantee supply from other producers.

“We need support to undertaking the project of putting up a refinery.

“We are talking of a $2 billion project here so it takes time and we need to have that facility in place as soon as possible,” Mr Shava said during the interview on Wednesday.

He was speaking after the tour of the mining project by Acting President Phelekezela Mphoko.

Acting President Mphoko commended the Ministry of Mines for timeously availing the requisite land on which GDI will build supporting infrastructure