Mimosa output rises marginally

by 7 percent to 210 000 ounces in the 12 months to June 2013.
Managing director Mr Winston Chitando said the fire, whose damage has since been resolved, was caused by a fault on the conveyor belt.
Mr Chitando was speaking during a media tour of the mine last Friday.
He said that the slight increase in production was attributable to improved efficiency measures the company implemented during the period under review.
Mimosa is a 50-50 joint venture between Aquarius Platinum (Pvt) Limited and Impala Platinum, which holds 87 percent stake in Zimbabwe Platinum Mines, the country’s biggest platinum extraction company.
“We lost production underground for a certain period of time when there was greatly reduced production, but we quickly recovered and after a period of four to six weeks we were operating at optimum capacity,” he said.
Mimosa was now working on rebuilding its stockpile. The firm maintains a stockpile of 196 000 tonnes, enough to support a production for a month, but the stock fell below 100 000 tonnes after the fire incident.
Mr Chitando said the giant platinum extractor had thus put in place a stockpile rebuilding team to ensure the firm returns to previous reserve levels.
“In terms of the plant, there is no effect on what we produced and what we are expecting to sell,” he said. “We are actually expecting a slight increase. In the forthcoming financial year, we are also expecting a slight increase.”
But he said there was pressure on the cost curve worldwide due to a jump in the prices of various inputs, but that remained within the industry norm and average cost increase for companies in platinum extraction. “We are heavily mechanised . . . from drills, roof support, transportation machinery, utility vehicles and underground workshops,” he said.
“As a result, we have increases in the cost of equipment. Over and above, that we have other consumables, such as chemicals, conveyor belts, material explosives and tyres where there has been pressure in terms of costs.”
The platinum company imports an average of 70 percent of the equipment, inputs and consumables it cannot procure at competitive prices.
The firm has been working on a feasibility study on expansion over the last two years, but has no firm plans yet.
But the company has in place a phase six-expansion team exploring the possibility of capacity expansion.
Mr Chitando said there were negotiations in progress with Government regarding localisation of the platinum mine, stressing there had been huge progress.
Foreign-owned companies are required, in terms of the Indigenisation and Economic Empowerment Act to sell a controlling 51 percent to locals.
Mr Chitando said while reliance on power was a constraint in the country, Mimosa had managed to find its way around the challenge after entering into an arrangement with Zesa and Hydro Cahorra Bassa of Mozambique for dedicated supply. Mimosa requires an average of 20 megawatts.