daniel chigunwe
Oliver Kazunga
Kuvimba Mining House (KMH), a state-owned entity under the Mutapa Investment Fund, is courting funding partners to develop open-cast mining operations at its US$2,5 billion platinum project in Darwendale.
Following the withdrawal of Russian investment partners, Vi Holdings, in 2022 due to the impact of the geopolitical conflict in Eastern Europe, Great Dyke Investments (GDI), a member of KMH, now wholly owns the Mashonaland West platinum project.
Previously, Zimbabwe’s Landela Mining Venture (Pvt) Ltd and Vi Holdings had partnered in a 50/50 joint venture for the project’s development.
KMH, established by the Government to acquire strategic mothballed mines and industrial operations, revealed last year that over US$50 million was needed to initiate mining activities. The long-term goal for the GDI project is US$500 million.
Responding to media inquiries at their Harare offices on Wednesday, KMH’s acting group CEO, Trevor Barnard, acknowledged the influence of subdued platinum group metal (PGM) prices on the GDI project but maintained its promising future.
“The decrease in PGM prices has certainly impacted our operations and plans for the Darwendale project,” Barnard said.
“However, we believe the project remains viable under current pricing conditions. It’s still a very profitable venture.
“We’re actively negotiating with potential funding partners and exploring other options to bring the mine into operation. Our initial focus will be open-cast mining to expedite timelines.”
Depressed platinum prices have been a trend since April 2023, with the World Platinum Investment Council (WPIC) forecasting near-record-low supply for 2024 due to slowdowns in South Africa and Russia. In March of this year, Zimbabwe’s oldest platinum mine laid off managers and supervisors due to the depressed global market prices.
While platinum prices dropped 35 percent year-over-year in 2023, limited supply in the first quarter of 2024 might offer some relief to producers. Platinum is Zimbabwe’s second-largest mineral export, after gold. Together, platinum and gold contribute over 50 percent of the country’s export revenue, with mining generating over 75 percent of total export earnings.
Barnard emphasised that securing a funding partner and the necessary capital is their top priority for starting the GDI project.
“We can’t disclose the specific capital outlay required for open-cast operations at this stage,” he said.
“We’ll certainly make that information public when available. However, we’re exploring several low-cost options to expedite mine development and begin producing platinum concentrate as soon as possible.”
In June 2023, KMH announced an investment of nearly US$100 million into the platinum project.
Exploration and feasibility studies have been completed on a concession covering an estimated 6 700 hectares.
Initial development began in early 2020 and included the construction of portal one for ore production, worker accommodations, and a guest lodge.
The operation is expected to yield 1,36 million kilogrammes of platinum over 60 years, with a processing plant capacity of 3,5 million tonnes of ore per year.
Bongani Ndlovu