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Russia platinum deal: The good news

14 Jun, 2015 - 00:06 0 Views
Russia platinum deal:  The good news President Mugabe and Russia’s President Vladmir Putin exchange greetings in Moscow yesterday. - Photograph: Danijel Osmanagic

The Sunday Mail

VLADIMIR PUTIN

VLADIMIR PUTIN

Kuda Bwititi – Chief Reporter

The US$4 billion-plus platinum mining project in Darwendale has one of the world’s largest reserves of the metal, with stocks averaging at least 40 million ounces (1 400 tonnes), exploration work indicates.

Around 10 million tonnes can be mined and processed annually, and there is potential to produce 25 tonnes of platinum group metals per year.

Great Dyke Investments (Pvt) (Ltd) – a Russo-Zimbabwe joint venture – made the findings after eight months of exploration and US$50 million of investments that have created some 100 new jobs and will create close to 5 000 more on project completion.

Roughly 20 percent of the 300 000 metres slated for drilling in 2015-16 has been covered.

The Global Platinum Mining to 2020 Report says global PGM reserves stood at 2,4 billion ounces in January 2015; with South Africa accounting for 91,4 percent, Zimbabwe 4,1 percent, Russia 1,6 percent and the United States 1,3 percent.

South Africa’s Bushveld Igneous Complex and Zimbabwe’s Great Dyke are two of the world’s largest platinum sources, and Zimplats and Unki have been mining these for years.

Responding to inquiries from The Sunday Mail, Great Dyke Investments chief executive Mr Igor Higer said, “The Darwendale platinum deposit, with an estimated 40 million oz PGM resource base, is one of the world’s largest deposits of PGMs. Large-scale exploration work continues in accordance with the long-term strategy of the project, which was approved by the Board of Directors of Great Dyke Investments (Private) Limited in January 2015.

President Mugabe

President Mugabe

“By the start of June 2015, 50 000 metres of drilling had been done. This is out of the total drilling of 300 000 running metres planned for 2015-2016. This will confirm the amount of indicated category resources of deposit for more than 20 years. A consortium of Zimbabwean companies, namely Tandamanzi and SMC, are involved in exploration work.”

Mr Higer said Great Dyke Investments had in the last eight months constructed modern ore storage facilities, six kilometres of roads, staff quarters and an office block.

“The company created more than 100 new working places and invested, up to now, US$50 million dollars into the project . . . The development strategy of the project involves the phased creation of mining and processing production facilities with mining and processing up to 10 million tonnes of ore per year, and smelting facilities that will provide the annual production up to (25 tonnes) of platinum group metals.”

Russia’s Ambassador to Zimbabwe Mr Serge Bakharev said Moscow was committed to the US$4 billion deal sealed by President Mugabe last year.

“This is the biggest investment Russia has made in Zimbabwe and because of its magnitude, our country is very serious about implementing it. Politically, our relations are excellent, but now our focus should be on economic issues. You have the resource and we have the expertise. This project is evidence that our economic relationships will continue to grow stronger,” Ambassador Bakharev said.

The bilateral mega deal represents the single-largest foreign investment in Zimbabwe since Independence in 1980.

The venture is administered by the Zimbabwe Mining Development Corporation and a Russian consortium comprising Vi Holdings (a private industrial company), National Bank of Development (a Russian state financial institution) and Russian Technologies.

US$3,5 billion will cover phase 1 (2014-17) and phase 2 (2018-2021), which involves exploration, infrastructure installation and construction of two underground mines and a processor.

Investment will hit US$4,2 billion in phase 3 (2022-2024) with construction of a second processing plant and opening of new mines.

A minimum of 5 000 jobs will be created through all three phases.

The initiative has been accorded National Project Status and its projected 10 million-tonne yearly ore production will be superior to Zimplats’ six million tonnes.

In May 2015, President Mugabe met his counterpart, President Vladmir Putin, at Russia’s 70th Great Patriotic War Victory Anniversary celebrations in Moscow, and the two leaders reffirmed commitment to the deal.

Russia is vastly experienced in platinum mining, with most of its reserves in the Russian Far East and Ural Mountains.

Prospecting, extraction, defining and metallurgical mineral processing and refining are Russia’s areas of expertise.

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