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NewsDay

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Zimplats invests $30m in proposed refinery

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Zimbabwe’s largest platinum producer, Zimplats, has invested over $30 million in carrying out a study for the establishment of the first-ever platinum group of metals refinery in the countr

Zimbabwe’s largest platinum producer, Zimplats, has invested over $30 million in carrying out a study for the establishment of the first-ever platinum group of metals refinery in the country.

Report by Bernard Mpofu Chief Business Reporter Zimplats chief executive officer Alex Mhembere told NewsDay that the platinum miner had engaged an international consultancy firm to carry out a feasibility study ahead of the construction of the mega project, widely expected to create more jobs in the sector and revenue through beneficiation.

He added that the local Platinum Producers’ Association, a group representing major platinum miners — Mimosa, Unki and Zimplats — were committed to setting up the new facility and decentralising the process.

The Zimplats boss said as production by the mines increases, South Africa, which is currently processing the metal, would run out of capacity to beneficiate the platinum group of metals.

“Zimplats being the largest company in the platinum industry in the country has taken a central role in that regard,” Mhembere said.

“We can confirm that work has begun in terms of the feasibility study to establish a base metal refinery and we have so far spent an excess of $30 million.

“Doing that is a strong commitment. We are putting our money where our mouth is. We have already spent this $30 million.

“When this facility comes on stream, we need at least 100 megawatts of uninterrupted power.

“We are working with Zesa to make them aware and plan for that.”

Endowed with the second largest platinum reserves in the world after South Africa, the government is pushing for the domestic processing of the mineral to plug revenue leakages and create more jobs.

The mining sector, according to government estimates, directly employs just over 45 000 workers.

According to the Chamber of Mines of Zimbabwe, at least $2 billion is required to set up the refinery.

Zimplats, a unit of South Africa’s Impala Platinum, is a platinum group of metals mining company that currently operates three underground mines and a concentrator at Ngezi as well as the Selous metallurgical complex, which comprises a concentrator and a smelter.

Zimplats, according to official figures, has invested $955 million over the last 10 years, increasing  annual platinum production by almost tenfold to 187 000 ounces from 20 000 ounces.

The platinum miner is targeting an annualised production of 270 000 ounces.