Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
ZIMBABWE’S largest platinum miner, Zimplats, has projected an exciting future as it rolls out a staggering US$1, 8 billion in capital projects over 10 years creating opportunities for local employment.
This comes at a time when a bankable feasibility study for the resuscitation of the suspended base metal refinery (BMR) project at the Selous Metallurgical Complex has already been completed, it said.
Based on the 2022 integrated annual report, the platinum miner said in the year under review a total of US$270,3 million was invested in capital projects up from US$159,1 million in 2021 financial period.
However, it is the US$1,8 billion financial outlay that thrills the mining firm.
“We look forward to an exciting future as the US$1,8 billion capital projects investment rolls out and projects (mines and plants) are commissioned,” reads part of the 2022 annual integrated report by Group board chairman, Professor Fholisani Sydney Mufamadi.
“The Group’s operating envelope is poised to expand exponentially into new territory with the commissioning of the Ngezi Third Concentrator plant, the expanded smelter (38MW furnace, approximately three times the size of the current furnace), and the SO2 abatement plant.
“The bankable feasibility study for the resuscitation of the suspended base metal refinery (BMR) project at the Selous Metallurgical Complex has already been completed.
“The expanded smelter and BMR will contribute significantly to the establishment of in-country beneficiation facilities for the PGM industry,” he added.
On operational update, the mining firm said a total of 7,1 million tonnes of ore were mined, which is slightly less than the 7,2 million tonnes mined in FY2021.
Ore milling increased by one percent to 6,9 million tonnes from 6,8 million tonnes in FY2021, it said.
The group turnover for the year totalled US$1,24 billion, down eight percent from US$1,35 billion in FY2021 as a result of falling metal prices.
“This was despite a 15 percent increase in 6E metal sales from 543 039 ounces in FY2021 to 622 761 ounces. A profit before tax of US$593,6 million was realised, 26 percent down from the US$800,5 million achieved in FY2021.
“Cash generated from operating activities increased by 13 percent to US$510,1 million from US$452,6 million in FY2021.
“Investment in capital projects increased by 70 percent from US$159,1 million in FY2021 to US$270,3 million.”
The report said US$270,3 million was invested in capital projects during the year, up from US$159,1 million in FY2021.
Implementation of Mupani Mine development and upgrade of Bimha Mine to replace Rukodzi, Ngwarati and Mupfuti mines progressed as planned during the year.
It added that the installation of the 0,9 million tonnes per annum Ngezi Third Concentrator plant is on schedule for commissioning in the first quarter of FY2023.
The board approved a US$521 million investment in an expanded smelter (38MW furnace) and SO2 abatement plant and construction work has since commenced.
Added to that an investment of US$37 million was approved as the first phase of the 185MW solar power project as part of the Group’s drive for sustainable development and the mitigation of potential power supply risk.
According to the report, under stay in business projects, it said the construction of employee houses is lagging behind schedule with only 308 houses out of the targeted 1 052 already handed over for occupation in June this year.
A total of US$20 million was spent on this project during the year bringing the project to date expenditure as of 30 June to US$21,7 million against a total project budget of US$23 million.
It said the tailings dam extension project which commenced during the year and is underway with implementation being rolled out in phases, is on course to meet first phase split deposition in January next year.
A total of US$7,7 million was spent during the year against a total project budget of US$24 million, targeting project completion in FY2026.
Online Reporter