malvernmugadzikwa
Business Writer
One of the country’s Platinum Group Metals (PGM) producers, Mimosa, says it invested US$40 million on capital projects in the six months to December 31, 2021 with a view to expand mine life and capacity.
Mimosa’s parent company, Impala Platinum Holdings (Implats), in an update for the period to December 2021, said the firm also accelerated plant optimisation operations through the North Hill project that will extend Mimosa’s life-of-mine by circa nine years.
“Capital expenditure increased by 25 percent to US$40 million from US$32 million during the previous quarter as spend on the plant optimisation project accelerated and studies on the North Hill life-of-mine extensions were completed,” the company said.
It noted that the feasibility study was completed and discussions regarding fiscal accommodations are progressing with the Zimbabwean Government.
“The plant optimisation project is aimed at increasing capacity and improving process recoveries, but due to Covid-19-related delays, the project commissioning is scheduled for December 2022,” said Implats.
Implats in July 2001 completed the acquisition of a 35 percent stake in Mauritius-based ZCE Platinum Limited, which held a 100 percent interest in Mimosa Mining Company (Pvt) Limited for a consideration of US$30 million that was used to fund an expansion of the mine from 15 000 ounces to approximately 70 000 ounces of platinum per annum.
Mimosa Mine operates on the southern portion of the Zimbabwean Great Dyke and is currently one of the lowest cost primary producers in the industry.
Implats noted that Mimosa operated well in the period under review, however, the operation was hampered by processing instability due to a change in reagent suppliers necessitated by global supply chain constraints, and further exacerbated by intermittent power interruptions during the period.
As a result, milled volumes declined by one percent to 1,42 million tonnes from H1 FY2021’s 1,43 million tonnes, while milled grade was marginally lower at 3,85g/t compared to 3,89g/t during the first half of 2021.
“Plant instability and poor recoveries due to reagent changes resulted in a 6 percent retracement in 6E concentrate volumes to 124 300 ounces.
“6E sales volumes declined by a more pronounced 28 percent to 116 500 ounces from 161 900 ounces, as volumes in the previous comparable period benefited from the deferred delivery of concentrate inventory accumulated during the IRS force majeure in FY2020,” the company said.
It added that sales in the period were impacted by transport constraints and administrative delays.
During the period under review, cash costs at Mimosa increased by 2 percent to US$107 million from H1 FY2021’ US$106 million with inflationary pressures partially offset by lower transport and selling expenses.
Unit costs per tonne milled rose by three percent to US$76 per tonne from H1 FY2021: US$74 per tonne, while unit costs per 6E ounce of US$863 were skewed by poor concentrator recoveries and increased by 8 percent.
“The stronger rand resulted in a 5 percent improvement in reported unit costs per tonne milled of R1 138 and unchanged unit costs of R12 969 per 6E ounce,” Implats said.
Overall group tonnes milled from managed operations declined by four percent to 11,30 million tonnes from H1 FY2021’s 11,79 million tonnes, with lower reported volumes at Impala Rustenburg and Impala Canada offsetting improved throughput at Marula and Zimplats.
Bongani Ndlovu