- Zimplats invested US$440 million in mine replacement and expansion projects
- This was despite a 20% decline in revenue and a 96% drop in profit after tax
- Key projects include the development of the Mupani Mine, the upgrade of the Bimha Mine, and the expansion of the smelter
Harare- Zimplats, Zimbabwe’s largest corporate despite facing challenging market conditions, demonstrated a strong commitment to future growth by investing US$440 million in mine replacement and expansion projects during FY2023, a 45% increase from the previous year.
This substantial investment was made despite a 20% decline in revenue to US$767.1 million, leading to a 96% drop in profit after tax (PAT) to US$8.2 million.
The company attributed these financial challenges to softer global metal prices and a rise in exchange losses.
Despite the revenue decline, Zimplats achieved a 5% increase in mined volumes to 7.9 million tonnes and a 6% increase in ore milled to 7.9 million tonnes, driven by the full-year operation of the third concentrator plant and higher milling rates.
This resulted in a 6% increase in 6E production to 646,000 ounces, benefiting from increased production from replacement mines.
Meanwhile, key capital expenditure projects included the US$325 million development of the Mupani Mine, crucial for replacing the depleted Rukodzi and Ngwarati mines. Mupani is expected to achieve production of 2.2Mtpa in FY2025, fully replacing the depleted mines, with a planned design capacity of 3.6Mtpa by FY2029.
The Bimha Mine upgrade, completed during the year, increased its design capacity to 3.1Mtpa from 2.0Mtpa, costing US$82 million and partially replacing tonnage from the Mupfuti Mine, expected to deplete in FY2028.
Other significant projects included the US$387 million smelter expansion and SO2 abatement plant, the US$36 million 35MW solar power plant, and the US$28 million refurbishment of the mothballed base metal refinery at Selous.
Zimplats' significant investments in mine replacement and expansion projects demonstrate their commitment to long-term growth and sustainability, despite the challenging market conditions. The company's focus on increasing production capacity and diversifying its energy portfolio positions it for future success.
