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Oliver Kazunga Acting Business Editor
PLATINUM producers in Zimbabwe have been urged to demonstrate total commitment to building a refinery ahead of the Saturday deadline by which they must present, to government, a strategic plan towards local beneficiation. President Mugabe last year threatened to halt exports of raw platinum to force mining companies to build a refinery in the country.
An industry source said: “From my understanding, the platinum producers have in the past indicated cooperation on the call by government that the producers should set up a refinery.
“Now the producers have to express real commitment towards establishing the refinery by presenting the proposal for the refinery to government ahead of the deadline,” said the source.
Last year, the Platinum Producers’ Association of Zimbabwe commissioned a feasibility study to set up the refinery locally. The report is expected to be presented to government next month.
The source, who cannot be named citing the sensitivity of the matter said: “Last year, the producers commissioned people from the University of Zimbabwe and other stakeholders to look at the feasibility study to set up a refinery. The study looks at aspects among others such as funding requirements for the platinum refinery.”
Government recently ordered platinum producers to set up a refinery locally, highlighting that raw exports of the metal to a processing facility in South Africa were prejudicing the economy of hundreds of millions of dollars and jobs.
Producers were reticent about the plan a few months, but are understood to be actively working towards building a processing plant. At least $3 billion is needed to construct it.
Presenting the 2014 national budget last month, Finance and Economic Development Minister Patrick Chinamasa said in an attempt to promote value addition and beneficiation of mineral commodities, government gave a two-year window starting 2013, for platinum producers to set up a refinery. He said government was, however, concerned by the lack of progress.
“Previous budgets have emphasised the importance of beneficiation and value addition of our mineral resources in order to diversify industry through forward and backward linkages, derive more value and, avoid exporting jobs.
“Regrettably, little progress has been made in the identified areas, and we continue to allow truck and rail loads of crushed rock ore out of our borders for value addition and job creation overseas.
“This is, however, notwithstanding that our production capacity and the platinum mineral reserves are adequate to support such investment on a sustainable and viable basis,” he said.
During the first 11 months of 2013, platinum production increased to 11,964,62 kilogrammes from 10 038, 82 kilogrammes registered during the corresponding period in 2012.
In April 2013, Zimplats commissioned a new phase two concentrator at Ngezi, which boosted the mining giant’s production capacity by 48 percent.
The other expansion project is expected to be completed by the first quarter of this year, further enhancing output.
And after completion of its phase two expansion programmes, Zimplats plan to have other expansion projects that will ensure sustainable growth and development in its platinum production.
The Government has revised upwards the 2014 platinum production target 13,000 kilogrammes from the initial target of 11,500 kilogrammes.
Online Reporter