‘Decline in metal prices on the international market affects operations’

PLATINUM giant, Zimplats, says the decline in metal prices on the international market has seriously affected operations in the white metal business.

NUNURAI JENA

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Speaking in Chinhoyi last week at the belated Mashonaland West provincial journalists awards, Zimplats head of corporate affairs Busi Chindove said her company, like other mining companies the world over, was going through a lean period due to a slump in platinum world prices.

“The price of platinum in January 2011 was $1 789 per ounce it fell to $1 239 the same time last year and then when we look at January this year the price of platinum averaged $856 so this obvious represent a huge decline of 52% from 2011 and just over 30% from last year and this is a crisis within the platinum industry” Chindove said.

She said as a result, her company was now operating on survival mode with an emphasis on cost management or cost reduction, cash management and production efficiencies.

Chindove said the situation was so serious considering that they have a responsibility to look after a workforce of more than 5 000 workers.

She said safety of its workers remained paramount despite employing all survival strategies, a thing they treasure most.

Chindove said Zimplats’ largest underground mine Bimha mine was now operational following its closure in 2014 after a mishap.

She said investigations showed that the mine collapsed due to a geological fault.

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