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Munyaradzi Musiiwa, Midlands Correspondent
ZVISHAVANE-BASED platinum miner, Mimosa, has been forced to increase its production and push volumes as its sales are being affected by the depleting grade of its mineral as well as plummeting platinum prices on the international market.
In a presentation during Minister of State for Midlands Provincial Affairs Owen Ncube’s (pictured far right) familiarisation tour of Mimosa last week, the company’s technical manager, Mr Didimalang Bhuti said Mimosa platinum’s grade had gone down while the prices of platinum had drastically dropped.
Mr Bhuti said platinum was now fetching less on the international market and the company has been forced to increase its production so as to stay afloat.
“As a company we are facing some challenges. These challenges vary from electricity supply, decrease in head grade and growth and dropping grade. Our grade has dropped and this means it’s now fetching less on the market. As a remedial action, we are now increasing the tonnage so that it compensates for the decreasing grade. The prices of platinum have also dropped from $2 000 per tonne to $1 000/t,” he said.
Mr Bhuti said at current production levels, the company has a lifespan of 30 years from the explored mineral deposits. The company is producing 2,9 million tonnes of platinum per year. He said the country had 2,8 billion tonnes of platinum deposits and Mimosa has 124 million.
“As it stands we have a lifespan of 30 years. In Zvishavane we have 124 million tonnes of platinum deposits, in Shurugwi there are 284 million tonnes and in Ngezi there are 2,4 billion tonnes of platinum deposits. At the moment we are extracting 2,9 million tonnes per year,” he said.
The country’s second platinum mining company employs close to 3 000 people. Minister Ncube applauded Mimosa for significantly contributing towards the development of Zvishavane and Midlands Province as a whole.
Online Reporter