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Lovemore Zigara Midlands Correspondent
THE country’s second largest platinum producer, Mimosa Mining Company is set to finalise feasibility studies early next year to pave way for the expansion of the Zvishavane-based mine. Mimosa which is jointly owned by Aquarius Platinum and Impala Platinum, the two largest platinum producers in the world, has set aside $40 million for the project expected to be undertaken in the next five years.
The expansion will see output doubling from current production levels which stand at 236,067 ounces (oz) and will extend the mine’s lifespan by 20 years. Executive chairman Winston Chitando told the Business Chronicle that the mine was undertaking a final feasibility study to determine whether or not the miner goes ahead with the expansion process.
“We’re now doing the bankable final feasibility study.
“Obviously metal prices are very depressed and this will have a bearing on whether or not the expansion process will go ahead or not.
“Once the feasibility study is complete early next year, a decision will be made on what stage to proceed with the expansion,” he said.
Platinum prices which five years ago peaked $1,700 per oz have plummeted to about $990.50 per oz as of yesterday and this has severely affected platinum mining operations in the country.
The latest efforts by Mimosa come in the background of revenue increase for the full-year to June which shot up to $272 million after delivering an all-time record production of over 236,000 oz of platinum group metals.
Bongani Ndlovu
Online Reporter