adminstakeholder workshop in Harare.
“We had initially set aside US$500 million for the beneficiation project and in 2010 we sent a team to Canada to assess the kind of infrastructure required. Despite all that has happened, I must say the smelter and refinery project is on course,” he said.
The establishment of smelter and refinery infrastructure for platinum is in line with the Government’s policy to encourage value addition among the economy’s productive sectors.
The recently launched National Trade Policy (2012-2016) points at the regulation of commodities exports “in order to boost beneficiation”.
This is because primary products whose international prices are vulnerable to external shocks, especially the minerals that now constitute at least half of total annual exports, dominate Zimbabwe’s exports.
Moreover, earlier this year, the Ministry of Mines and Mining Development said it would soon withdraw export licences from all miners exporting raw platinum to promote value addition.
This would compel all the platinum producers to establish smelters and refineries.
But Mr Masunda said a single smelter and refinery would be enough for all the current platinum producers.
“There is, however, need for a critical mass — that is, players such as Unki and Mimosa ramping up their output and coming on board. The key factor here is to be assured of adequate stockfeed going forward,” he said.
The current combined production levels from the three platinum mines is below 500 000 ounces, which is inadequate for the establishment of a refinery.
Zimplats’ current annual output of 180 000 ounces is expected to reach 270 000 ounces a year after Phase 2 ramp-up activity is completed at its Ngezi Mine.
The Unki Mine in Shurugwi, at full tilt, is expected to produce around 65 000 ounces, while management has indicated plans to increase output to 150 000 ounces.
The Mimosa Mine produces 100 000 ounces, and management has also indicated production ramp-up plans to the mine’s 200 000 ounce design capacity.
Expert observers estimate that it would require around US$2 billion to set up such infrastructure, and would perhaps fall under an indicated Phase 3 expansion of Zimplats to the tune of US$10 billion.
Zimplats is majority owned by South Africa’s Impala Platinum Mines. The company has tabled an indigenisation plan that will gradually see the transfer of the ownership of the mine to locals.
Platinum concentrate produced by Zimplats is sent to South Africa where such beneficiation capacity exists.
Value-addition in the minerals sector has a number of benefits that accrue to the overall economy, but mainly greater cash generation and job creation.
Online Reporter