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Michael Tome
Business Reporter
ZIMBABWE Platinum Mines (ZIMPLATS) says it posted a four percent year on year growth in mining volumes in the quarter to June 2023 inspired by improved power availability.
Electricity supply recorded a marked improvement in the second quarter of 2023 owing to contribution from the newly constructed Units 7 and 8 at Hwange Thermal Power Station that added over 600 Megawatts to the national grid.
Hwange Thermal Power Station Unit 7 came on board in March 2023 contributing 300 Megawatts to the national grid while Unit 8 synchronisation was attained in June, a situation well received by all major economic actors who have been yearning for reliable and sustainable energy sources.
According to Zimplats, total mined volumes in the quarter under review increased by six percent ahead of the prior quarter.
In the course of the period, Zimplats saw a two percent growth in output of 6E, which include platinum, palladium, rhodium, ruthenium, iridium, and gold, while 6E metal in concentrate production increased by nine percent, compared to the prior quarter.
Milled volumes grew by three percent ahead of the comparable quarter and 10 percent year-on-year while 6E metal in final product increased by nine percent from the prior quarter.
“Mined volumes increased by four percent from the prior comparable quarter, which was negatively impacted by poor equipment availability at Mupfuti Mine. Ore milled increased by 3 percent from the prior quarter to 1, 94 million tonnes and benefited from the increase in operating days and improved availability of power during the period. The third concentrator at Ngezi was commissioned in September 2022 and increased milling capacity resulted in a 10 percent increase in milled throughput from the prior comparable quarter,” Zimplats said in the statement of financials for the quarter to June 2023.
In the period under review, Zimplats total operating costs increased by 19 percent from the prior comparable quarter given the high inflation for consumables and utilities compounded by the four percent increase in mined volume.
Zimbabwe is the world’s third-largest producer of platinum after Russia and South Africa and Zimplats, Unki, and Mimosa are the country’s major producers of world sought platinum. PGMs output is projected to remain on a positive trajectory in view of several platinum projects that are currently underway.
These include investments being channeled towards the mineral’s extraction by Karo Resources and Great Dyke.
Zimbabwe envisions a US$12 billion mining industry by 2023 and platinum is anticipated to contribute US$3 billion as production is projected to surge to 2,5 billion ounces in 2023 from 979 000 in 2018. Gold and diamonds are expected to contribute US$4 billion and US$1 billion respectively while chrome, iron and carbon steel will contribute US$1 billion.
Coal and hydrocarbons are also forecast to contribute US$1 billion while lithium is projected to generate US$500 000. Despite the economic and supply chain challenges, demand for platinum from automotive, jewelry, and industrial end uses remained robust, with ongoing tightness in the platinum market illustrated by continued elevated lease rates, which were accentuated by ongoing high levels of excess imports into China.
Hwange Units 7 and 8 expansion project is one of the Second Republic’s signature projects aimed at boosting power generation to support economic transformation in line with the National Development Strategy 1 (NDS 1).
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