The Sunday Mail
Business Reporter
ZIMPLATS, the country’s biggest producer of platinum group metals (PGMs), says its capital projects worth over US$1 billion are progressing well and on target.
Under its US$1,8 billion investment programme, the miner plans to develop new mines and expand its smelter, as well as construct an additional concentrator, base metal refinery, sulphuric acid plant and a 110MW solar power plant.
In its quarterly update for the period ending March 31, 2023, Zimplats said development of Mupani Mine and the upgrade of Bimha Mine progressed as planned.
The new mines are expected to replace Rukodzi Mine, which was depleted in 2022; and Ngwarati and Mupfuti mines, which will be depleted in 2025 and 2028, respectively.
“Cumulatively, a total of US$295,3 million has been spent on these projects, with an additional US$73,5 million committed, against a project budget of US$468 million,” the company said.
About US$4 million was spent on Ngezi’s third concentrator plant during the quarter, bringing the project expenditure to date to US$101,1 million, with a further US$3 million committed as at the end of the quarter, against a project budget of US$104,1 million.
The plant operated at design production capacity throughout the quarter.
The implementation of the US$521 million smelter expansion and sulphur dioxide abatement plant project remains on track.
“The project progressed well during the quarter. A total of US$66,6 million has been spent on the project to date, with a further US$342,5 million committed,” Zimplats said.
About US$800 000 has been spent while US$35,8 million has been committed for the 35MW solar plant project at the Selous Metallurgical Complex.
Overall, the budget stands at US$37 million.
This is the first of the project’s four phases.
“The final phase is scheduled for completion in FY2027, at a total project cost estimate of US$201 million,” added the report.
The company has also already spent US$4 million for the refurbishment of the base metal refinery, with a further US$20,2 million committed.
In terms of production, Zimplats’ mined tonnage dropped by 4 percent from the previous quarter due to a decline in operating days to 90 from 92.
Ore milled also declined by 3 percent from the prior quarter to 1,88 million tonnes as a result of decreased number of operating days and power outages suffered in the final month of the quarter.
“The year-on-year increase in milled volumes was due to the inclusion of tonnes milled at Ngezi’s third concentrator plant, which was commissioned in September 2022,” it said.
However, total operating cash costs fell by 5 percent from the prior quarter due to lower production volumes.
Overall, the year-on-year total operating costs increased by 16 percent owing to rising inflation, a 7 percent increase in volumes mined and 10 percent growth in tonnes milled.
Zimplats said the benefit of mined and milled volumes on unit costs was offset by decreases in 6E head grade and recoveries, resulting in a year-on-year unit cost increase of 16 percent.
About US$2,3 million was spent on exploration drilling during the quarter and US$3,6 million was committed as at March 31, 2023.
Exploration activities related mainly to surface diamond drilling to upgrade the group’s mineral resources and geo-technical assessments of the rock mass properties in support of current and future mining operations.
“A total of 21 047 metres were drilled as part of the exploration work during the quarter,” the company added.
