The Sunday Mail
The much anticipated US$2 billion Darwendale platinum project moved a step towards full production when the mine owners, Great Dyke Investments (GDI), started mine construction with a box cut ceremony which was presided over by Mines and Mining Development Minister Winston Chitando. On the sidelines of the event, our Business Reporter Ishemunyoro Chingwere (IC) engaged GDI chief executive officer Mr Alex Ivanov (AI) on a number of issues around the project. Read on. . . .
IC: Mr Ivanov, you have said a lot around this project, and it all looks good and rosy, but what does this mean for the ordinary person out there? Why should they look forward to this project?
AI: This project will be viable and beneficial not only from the financial point of view; not only for the shareholders but also for the local community and this is the reason why we start not only with production work.
A few kilometres from here we have started building a big training centre for people who would like to work for us but do not have the relevant skills.
IC: The project has previously had headwinds since its launch, what has been done now to make sure there won’t be such challenges?
AI: People don’t understand. When they came here some five years ago, they didn’t see any yellow equipment, they didn’t see people with helmets, they were just reading newspaper stories. Let me clarify this, if you are undertaking a project of this magnitude, which has the potential to make the country a top four world platinum producer, you have to do your homework very thoroughly.
First of all, there has to be sufficient reserves, and big enough ore body to produce what we intend to produce for the next 25 to 30 years. If you are talking about reserves and resources, you have to do exploration work, you have to drill, collect the samples, analyse them and prepare a geological report which will be bankable. We drilled 120 000 metres in one and half to two years.
I can tell you that for the last 10 to 15 years, this is the biggest exploration programme in Southern Africa, not only in Zimbabwe.
It definitely took time. After the completion of the geological work, you get the confirmation that yes it’s a big deposit and there is platinum. Then you go to stage number two, which is the bankable feasibility study.
IC: What is the latest on the bankable feasibility study?
AI: It was done in 2018. That’s when we started serious discussion with a consortium of bankers who support this project because don’t forget that we are talking about more than half a billion dollars, it’s huge. So we had to convince the bankers that from a political perspective, economic perspective, social perspective, it’s viable and, of course, it takes time.
IC: In simple terms Sir, the project has not had any problems?
AI: No! Absolutely. I see it progressing very well.
IC: You speak of bankability and investments from financial institutions. Are you succeeding in luring the requisite capital for the project?
AI: Of course. First of all, the investors — Russian investors — started funding the project in 2014 and haven’t stopped yet, they continue to inject more money. Zimbabwean shareholders, also, are supporting the project financially. Our relationship and negotiations with Afreximbank, the main lender, the organiser of the lending, is yielding results. So from a financial point of view, I don’t see any troubles.
IC: Are there any banks that have so far come on board to finance?
AI: Unfortunately, I cannot share all the information about the lenders until we sign the final documents, but believe me, most of the banks in our consortium are well established banks on the African continent.
IC: You spoke of this first portal, Mwendamberi portal, and the second one contributing about 70 percent of what Zimplats is currently producing. ln future at full throttle, where do you see this project?
AI: There are basically three stages of production which we are working on. On the first stage we seek to achieve 180 000 tonnes concentrate per annum. On the second stage we will increase production to a stage where we will start to build our own smelter.
However, for now I would want to limit our view to the first stage because it’s a very big investment and it takes time to get to the level we want.
IC: What time frame is there for the first stage?
AI: In 2022 we start production. So in two years we have to invest in all this development for phase one.
IC: How much is the cost of establishing one portal? Just the mining portal like the one you are starting today?
AI: For this particular portal, we are looking at US$5 million.
But it’s just the portal without the infrastructure like the complex development of the portal, which is much more.
I can’t give you an exact figure but it’s about US$20 million per portal.
