- Operational Growth: 3% increase in mined volumes, driven by the ramp-up in production at Mupani Mine, despite declining global metal prices
- Major Investments: The company has invested US$36 million in a 34MW solar plant, which is the first phase of 185 MW project
- Capacity Upgrades: Zimplats has upgraded Bimha Mine capacity from 2 million tonnes to 3.1 million tonnes per year and is developing Mupani Mine, expected to reach full production of 3.6 million tonnes per annum by FY2029
Harare- Zimbabwe’s largest corporate, Zimbabwe Platinum (Zimplats), has defied the poor global metal prices that have shocked the company’s profitability, primarily due to a decline in PGMs global metal prices.
Despite these challenges, the compny has commissioned a US$36 million solar plant, the first phase of a planned 185MW project meant to secure the energy the mine needs to back up its US$1.8 billion expansion projects.
The expansion includes a larger smelter, which is now going through commissioning with the first matte being produced this month.
Zimplats has been importing most of its electricity increasing its costs bill. Electricity costs have inflated its operating costs recently by 40%. This is a milestone given the country’s blackouts pandemic and record electricity charges.
This will also lessen pressure on the national grid and provide for other sensitive sectors not yet having solar back-up energy.
Besides the multi-million solar project, the company has also finished upgrading the Bimha Mine, designed to partly replace production from the Mupfuti Mine, which reaches the end of its life in the 2029 financial year.
This upgrade has increased capacity at Bimha Mine from 2 million tonnes to 3.1 million tonnes per year.
“A new mine, Mupani, is being developed to replace the depleted Rukodzi and Ngwarati mines, with full production of 3.6 million tonnes per annum planned for the first half of FY2029,” said the corporate.
“Cumulatively, US$413 million has been spent on these projects as of September 30, 2024, against a total project budget of US$468 million,” Zimplats reports in its latest quarterly update with US$412 million allocated to the smelter expansion and sulphuric acid abatement plant project, which has a total budget of US$544 million.
The hot commissioning of the expanded smelter began during the quarter under review, further demonstrating Zimplats' proactive approach to enhancing its production capacity.
Meanwhile duringthe quarter, Zimplats has managed to improve its mined volumes, reporting a 3% increase both year-on-year and quarter-on-quarter, due to the ramp-up in production at the Mupani Mine.
In addition to the solar project, Zimplats has made substantial progress in its mining operations. Production from Ngwarati Mine, which ceased primary operations in June 2024, has been effectively replaced by increased output from pillar reclamation at Rukodzi Mine and continued production from Mupani Mine.
The 6E head grade saw a 2% year-on-year and 3% quarter-on-quarter improvement, benefiting from higher tonnage derived from elevated-grade stoping areas at Mupani Mine. Milled volumes also improved by 1% year-on-year, reflecting a successful mill-reline shutdown completed in the previous comparable period.
However, the company experienced a 3% and 1% year-on-year and quarter-on-quarter decrease in concentrator recoveries. This decline was offset by higher mill feed grades, resulting in a 1% year-on-year and 2% quarter-on-quarter increase in 6E in concentrate production.
Despite the challenging global market conditions, Zimplats continues to invest in projects that bolster its operational resilience and long-term sustainability.
The successful commissioning of the solar plant, along with advancements in mining production and infrastructure, positions Zimplats to navigate the complexities of the mining landscape while maintaining its status as a leader in Zimbabwe’s platinum sector.
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