Unki engages ZimAlloys

Business Reporter—
Anglo American’s platinum mine, Unki, engaged ZimAlloys over the possibility of utilising its smelter as the mining group steps up efforts to secure beneficiation facilities. The platinum mining company has been doing some due diligence on MonaChrome and ZimAlloys smelters. Unki Mines general manager Mr Walter Nemasasi confirmed to The Herald Business that the group has been in discussions with local firms who have smelter facilities.

“When Government announced that the 15 percent export tax was there to stay, the group started engaging local firms with smelter facilities and those were MonaChrome and ZimAlloys. The engagement is part of the group’s value addition and beneficiation mantra going into the future,” said Mr Nemasasi.

However, Government has suspended the 15 percent tax on raw exports of platinum for a period of two years to allow mining companies more time to set up platinum beneficiation facilities.

This allows the country’s mines to continue exporting raw platinum group metals without being subjected to the tax.

Grant Thornton Camelsa advisory manager Mr Bulisa Mbano whose company is judicial manager for ZimAlloys confirmed the discussions.

He said one of the ZimAlloys smelters can be converted for platinum smelting and AngloPlat can refurbish the smelter and operate it on site rather than set up a new one.

“AngloPlat approached us sometime back over the possibility of refurbishing the plant and operate it on site during the time when platinum miners were facing pressure from Government,” said Mr Mbano.

MonaChrome judicial manager Mr Christopher Maswi of Fairvalue management consultancy yesterday said AngloPlat also approached them but they did not submit a bid.

However, last month in Johannesburg, AngloPlat said it plans to build a “second-hand” smelter at the mine.

Chief executive officer Chris Griffith said the company will use “all sorts of bits and bobs around the company” to build a smelter at its Unki Mines in Zimbabwe.

It halted exports of metal concentrate from the country to South Africa after negotiating with the Government over the tax that came into effect in January, the producer said in a statement. Exports resumed in July following a deal to postpone the tax, it said.

“We’ll be coming up with what we think is an optimal low-capital solution to smelting.

AngloPlat has so far invested $350 million in Unki since it started operations, producing 67 000 refined platinum ounces in 2013 and production has been on a steady rise since 2011.