Unki exports boon for platinum sector

is a development that is expected to provide a boon for the Zimbabwean economy.
This optimism is based on sustained high global demand and prices for the mineral.
Unki shipped its first consignment of platinum concentrate at the end of last month, although it was not stated how much was marketed.
Management at Unki has indicated that they are targeting to produce 4 400 ounces a month, and 150 000 ounces annually.
At full tilt, the Unki project — which is located in Shurugwi along the country’s mineral-rich Great Dyke – will profit the economy at large in respect of enhanced platinum output, but will also accrue direct benefits for the surrounding communities.
The project is expected to create 1 000 direct jobs with management expecting up to 10 000 more to benefit in downstream and related activities in what should be a major boon for the Midlands economy.
Zimbabwe has the second largest deposits of platinum ore in the world, which means Unki has the potential to become Anglo-American’s largest source of the mineral in the future. Unki is set to become Zimbabwe’s third largest platinum mine behind the local operations of Anglo rival Impala Platinum (Implats).
Meanwhile, Implats – who own the Selous-based Zimplats complex and has a 50 percent interest in the Zvishavane-based Mimosa Platinum Mine – is implementing a US$500 million expansion programme at Zimplats which will see output increasing from the current 96 000 ounces to about 270 000 ounces by 2014.
It is anticipated that with time and increased investment, the Zimplats project has the capacity to produce around one million ounces of platinum on an annual basis.
Mimosa has also indicated plans to ramp up production to the mine’s 200 000 ounce design capacity.
Reserve Bank of Zimbabwe Governor Dr Gideon Gono has projected an upturn in platinum output this year on the basis of commencement of operations at the Unki mine.
“Cumulative platinum output to October 2010 was 7 252kg, compared to 6 848kg in 2009.
“Production is expected to increase to 12 500kg in 2011 programmes, mostly at Unki and Mimosa mines,” said Dr Gono in his monetary policy statement earlier this year.
Unki comes into a sector that has been largely driven by the country’s two largest platinum producers, Mimosa and Zimplats, which have been operating at optimal levels despite the economy-wide illiquidity, electricity shortages and a credit crunch that has generally constrained the enhancement of productive capacities.
Notwithstanding these economic impediments, production at the country’s platinum mines have been buoyed by consistently positive international platinum group metal (PGM) prices, which have resulted in positive cash margins for exports of PGMs from the country.
The platinum mineral per se has been consistently averaging just below US$1 600 per ounce.
Platinum currently accounts for 36 percent of the country’s total mineral production, reflecting significant growth for a minerals sub-sector that is a relatively recent addition to the mining sector.
A couple of platinum projects are also in the pipeline, namely London-listed Kazakh mining firm ENRC’s 60 percent owned Bokai project near Gweru, which is set to be operationalised at an estimated cost of US$250 million.
Amari Resources is determined to spend US$20 million for its pre-feasibility and Serui platinum project evaluation exercise.
Through its wholly owned Amaplat subsidiary, the company has a 50/50 joint venture with the Zimbabwe Mining Development Corporation (ZMDC) known as Zimari Platinum for the Serui project.
Platinum production in Zimbabwe’s anticipated sustained growth in the foreseeable future is buttressed by realisation that global demand for the mineral is expected to outstrip supply as other key platinum producers including South Africa and Russia’s production wanes.
The Unki project could be an easy success as Zimbabwe’s platinum deposits are typically shallow compared to the deep-level deposits in South Africa, for instance, meaning that the cost of mining platinum in this country is far cheaper than in other countries where the deposits are found.