Timothy
Nelson Gahadza
Senior Business Reporter
ZIMBABWE’s largest platinum producer, Zimplats, says it will invest a total of US$1,8 billion on expansion projects, which are at different stages of implementation, over the period to 2028.
The platinum giant said this at a signing ceremony of a US$1,4 billion Memorandum of Agreement with the Ministry of Mines and Mining Development on the sustainable development of the Platinum Group Metals (PGMS), presided over by President Mnangagwa at State House, in Harare, yesterday.
The envisaged investments would see the setting up of integrated projects and the development of new mines, expansion of its smelter, construction of another concentrator, establishment of base metal refinery, sulphuric acid plant and the setting up of a 110MW solar power plant.
According to the Zimplats presentation, Mupani mine development will cost US$386,2 million, the third concentrator plant US$133 million, Bimha Mine upgrade US$82 million, sulphuric acid plant US$200 million, expanded smelter US$280 million, PGM base metal refinery (BMR) plant US$200 million, Hartley mine development US$289 million, a 110MW solar power plant for US$201 million and housing US$20 million.
Alex Mhembere, the group’s chief executive, in a presentation said the Mupani Mine upgrade project was a replacement for the depleting Rukodzi, Ngwarati and Mupfuti mines.
It will be upgraded from 2,2 million tonnes per annum (Mtpa) to 3,6 tonnes per annum and ore production is expected in the financial year 2022.
The Bimha mine redevelopment and upgrade project is a project following the 2014 mine collapse. The upgrade is meant to replace depleting Mupfuti mine.
The mine will upgrade from 2,2 Mtpa to 3,1 Mtpa and the full capacity of 3,1 Mtpa ore production is targeted for financial year 2023.
The US$20 million turf housing development project involves investments in additional houses, water and sewer reticulation facilities as well as additional power supply.
The third concentrator plant project will commence production at 0,9 Mtpa in FY2023 and ramping up to 2,2Mtpa by FY2024.The project will see an increase in ore milling capacity from 6,7 Mtpa to 7,52Mtpa and will create additional 100 direct permanent jobs.
According to Mhembere, the smelter expansion and sulphur dioxide Abatement plant will have capacity to produce 100 kilo tonnes per annum of sulphuric acid which is used in the local production of phosphate fertilisers, thereby replacing current acid imports.
“This will result in creation of 47 direct permanent jobs at Zimplats with an opportunity to create more along the value chain. This will also result in reduction in fertiliser imports by about US$50 million and boost other industries, water purification, battery manufacturing and other chemical industries,” he said.
The expanded smelter project will see smelting capacity increased from 132 kilo tonnes to 380 kilo tonnes of smelted concentrators.
Mhembere said the project will enhance the company’s capacity to smelt its own resources and local third parties.
“This will see employment creation of 40 permanent jobs and save on transportation of bulk concentrates across the border and avail opportunity for new mines to reduce capital requirements,” he said.
According to Zimplats, the BMR plant project will have capacity for local PGM base metal refining and will create 100 direct jobs and at least 1 000 indirect jobs.
The platinum giant will develop, finance, build, own and operate a 185MW solar photovoltaic plant in order to improve security of power supply.
The PV solar plant is expected to be commissioned in the financial year 2023. Mhembere said the Hartley mine project involves development of a 2,2Mtpa capacity and this will increase overall Zimplats ore production to 8,8 Mtpa by financial year 2028.
The Zimplats projects resonate well with the Government’s quest of the mining sector becoming a US$12 billion industry by 2023 as well as the broader Vision 2030 which seeks to fundamentally transform Zimbabwe to an upper middle-income economy by 2030.
Bongani Ndlovu