PGMs’ future is bright

10 Nov, 2019 - 00:11 0 Views
PGMs’ future is bright

The Sunday Mail

Zimbabwe’s second largest Platinum Group of Metals (PGMs) producer, Mimosa Mining Company, held their long service and superior performance awards a fortnight ago and celebrated employees who have been with the company for the past five, 10, 15 and 20 years. Our Business Reporter, Ishemunyoro Chingwere, interviewed Mimosa managing director Mr Fungai Makoni (pictured right). Mr Makoni spoke on a variety of issues, among them the future of PGMs in light of a global push towards electric cars. He also spoke about the business environment in Zimbabwe, among other issues. The following are excerpts from the interview.

Q: There is a global push towards electric cars and one would think this will spell doom on the future of platinum mining. Is this not a cause for concern?

A: Obviously that is a challenge, particularly as the world moves towards a green environment. However, we still believe that there is a future in terms of alternative use. One of the main areas that research is currently looking at is the fuel cell technology, where you use platinum as a catalyst to convert hydrogen into a clean fuel. That will compete very effectively with electric cars.

Where electric cars are using batteries and electricity generated, this particular technology will use hydrogen as fuel, with platinum as the catalyst that will convert it into the fuel to emit a clean result. Platinum is also being used as a catalectic convertor in the diesel engine.

The other element that is within the PGMs basket is palladium, which is being used as a catalectic convertor in petrol engines. So since demand for petrol engines in the medium term is expected to be high, the price of palladium has reacted accordingly. So where the price of platinum is weak, the price of palladium has tended to be firmer and that has helped the prices of the PGMs basket to balance.

Q: There is an issue among producers on the cost of production. Some complain that it’s relatively higher in Zimbabwe. What is your take?

A: We have a challenge in our environment, but we have to manage the business in a manner that is cost effective. We want to be in the lowest cost quota of platinum producers, we are not there yet. There is a bit more we can do to get into that quota and we are working on it.

Q: Are you buying some of your consumables locally?  

A: We are keen on supporting local businesses, but it has to be on the basis that they provide competitive costs at the right quality to our businesses.

Q: This year, most mining houses have bemoaned erratic power supplies due to load-shedding. How bad has been the situation for you? 

A: We haven’t been affected at all. We have had a good engagement with Zesa and have come up with an agreement. So we have been receiving uninterrupted power supply and that has worked very well for us for the past five to seven years. It’s an arrangement that should run again for another two to three years.

Q: What sort of support are you getting from the biggest stakeholder the Government? 

A: We have an excellent working relationship with the Government. However, there are certain things that we feel could be improved. We have learnt that we have to constantly engage Government, it’s a process. If you engage Government, you get the result. But like in any other case, there is always room for improvement on some areas. But we are engaging with Government, all the other relevant authorities, both directly as Mimosa and also through the Chamber of Mines.

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