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Roberta Katunga, Senior Business Reporter
PLATINUM mining concern, Zimplats, spent $42 million on stay in business projects recording a 11 percent decrease compared to last year, a situation the company has blamed on low metal price environment.
According to Zimplat’s 2016 Integrated Annual Report, $47 million was spent last year on stay in business projects that include the Bimha mine redevelopment, Ngezi Phase 2 expansion and refurbishment of the Selous Metallurgical Complex (SMC) base metals refinery (BMR).
Reporting on the projects, chief executive officer Alex Mhembere said the Ngezi Phase 2 expansion project completion was targeted for next year with a total of $453 million having been spent to date from inception of the project.
“Implementation of the Ngezi Phase 2 Expansion Project is progressing well and project completion is targeted in FY2017,” he said, adding that against a budget of $492 million, $453 million had been spent.
Mr Mhembere revealed the refurbishment of the SMC BMR which commenced in 2015 with the view of commissioning it in July 2016 had been delayed with $22 million against a budget of $131 million spent to date.
He said implementation of the project was affected by the availability of cash.
“I regret to report that the rate of implementation of this project was affected by the availability of cash following the low metal price environment which has persisted since FY2015. The project was therefore not commissioned in July 2016 as originally communicated.
The furnace at SMC is operating at full Phase 2 capacity of 6,2Mtpa and the facility has been derisked through operating it at reduced power. A bankable feasibility study for a second 15MW rectangular furnace to manage risks associated with the existing circular furnace was carried out and completed in July 2016.
Once approved, it is anticipated that the second furnace could be ready for commissioning by the first quarter of FY2019,” he said.
On the implementation of the Bimha Mine redevelopment project, Mr Mhembere said the project was on course to achieve design production capacity by April 2018.
“The initial development of the box cut for Portal 6 mine, targeting to replace Rukodzi and Ngwarati mines that deplete in FY2022 and FY2025 respectively, commenced in June 2016. Once the project has been approved, the proposed mine is scheduled to reach full production of 2,2Mtpa in August 2025 at a total cost of US$266 million,” he said.
Meanwhile, chairman of the board of directors Mr Fholisani Mufamadi reported that the Group had managed to achieve another year without a fatality.
Mr Mufamadi said the company had achieved over five million fatality-free shifts and was committed to the zero harm objective.
According to the integrated report the total number of lost time injuries decreased from 12 last year to 8 in 2016 while the total number of reported injuries decreased by 22 percent from 18 in 2015 to 14 in 2016 resulting in the total injury frequency rate (TIFR) improving by 24 percent from 1,33 to 1,01.
“The Group remains committed to the ‘zero harm’ objective. Management will strive to achieve this objective through behaviour-based initiatives and adoption of proven technology designed to reduce exposure of employees to a hazardous working environment,” said Mr Mufamadi.
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