GOVERNMENT has stepped up its efforts to push local platinum mines to set up a refinery to process the white metal amid concerns that Treasury could be losing significant amounts of funds.
Report by Bernard Mpofu Chief Business Reporter
Mines and Mining Development secretary Prince Mupazviriho told delegates attending the signing ceremony for an economic empowerment terms agreement between Mimosa Mining Company and government on Friday that government would facilitate the establishment of a multi-million dollar facility to beneficiate the country’s main mineral export.
Currently endowed with the second known platinum reserves in the world after South Africa, Zimbabwe’s three main platinum producers — Zimplats, Unki and Mimosa — process the mineral in neighbouring South Africa.
“We want to get to a stage where we have platinum refinery in the country. In 2013 we must frantically work to ensure that we have achieved that,” Mupazviriho said.
Mining contribution to GDP has grown from an average of 10,2% in the 1990s to an average of 16,9% from 2009–2011, overtaking agriculture.
In his 2013 budget, Finance minister Tendai Biti said mineral exports rose by 230% over the 2009–2011 period, making mining the leading export sector. By the end of 2011, mineral exports accounted for 47% of total exports, led by platinum (43%), gold (28%), and diamonds (20%).
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. The mining companies have already committed to construct the facility although they say more developments are required to roll out this mega project.
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Early this year, Zimplats told NewsDay that the company 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.
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.
