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MINES and Mining Development Minister Walter Chidhakwa yesterday said he held “interesting discussions” with Impala Platinum Holdings chairman Khotso Mokhele on building a base-metal refinery in the country. The cost of building the refinery is estimated to be over $2 billion. “They have got ideas which we are beginning to consider as well,” Chidhakwa told reporters in Harare yesterday, without commenting further.
Zimbabwe wants the world’s biggest platinum producers to build a refinery to help kick-start the recovery of its economy, which contracted by 40percent between 2000 and 2008.
Units of companies including Impala and Anglo American Platinum would be compelled to send their ore to the plants, according to a January 3 letter to producers.
There are currently three platinum producers in the country – Zimplats, Mimosa and Unki.The country is the largest holder after South Africa of reserves of the metal, used for catalytic converters that reduce emissions from vehicles, and in jewelry.
Impala’s Zimplats unit, the country’s top producer, submitted proposals to the government that remain under discussion, Johan Theron, a spokesperson for the Johannesburg-based company, said yesterday by phone. The plans would be made public if they lead to an agreement, he said.
“Our discussions definitely are constructive,” he said. In January Chidhakwa told our Harare Bureau that the commitment by mining companies to building the refinery was a positive development that supported value addition in the mining sector.
“We met officials representing the platinum mining companies and we believe it was a step in the right direction. They submitted to us their proposals and we are evaluating them,” he said.
“They have made a commitment that they will continue to support Zimbabwe and the setting up of a platinum refinery is one of their aspirations. This shows that we no longer have any hurdles. So, the road is clear now for us to achieve our dream of adding value to our minerals.”
Production of platinum would be expected to be increased to 500, 000 tonnes annually for the refinery to be fully operational.
Government is pushing for the construction of a local refinery as part of efforts to ensure value addition. — Bloomberg/Business Reporter
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