
ZIMPLATS Holdings Limited spent about US$35 million on its major projects in the quarter ended December 31 2024, as the platinum group metal miner moves to scale up production.
During the quarter under review, the miner cumulatively spent US$339 million in capital expenditure (capex) on its Mupani Mine, smelter expansion and SO2 abatement plant project (US$443 million), solar plant project (US$37 million) and Base Metal Refinery refurbishment project (US$32 million).
In the quarter ended September 30 2024, Zimplats cumulatively spent US$413 million on developing both its Mupani and Bimha mines, smelter expansion and SO2 abatement plant project (US$412 million), solar plant project (US$36 million) and Base Metal Refinery refurbishment project (US$29
million).
The difference between the two periods is at least US$35 million, as in quarter ended December 31 2024 had no capex into Bimha Mine.
“The development of Mupani Mine, which replaces the depleted Rukodzi and Ngwarati mines, is progressing well and remains on schedule, with full production of 3,6 million tonnes per annum planned for H1 FY2029. Cumulatively, US$339 million was spent as at 31 December 2024 against a total project budget of US$386 million,” Zimplats
said.
“The smelter expansion and SO2 abatement plant project is progressing well with a total of US$443 million spent to date against a project budget of US$544 million. The first phase of the project, which encompasses the expanded smelter and off-gas handling facilities, is technically complete, with converters commissioning in progress as at end of December 2024.”
- Zimplats raises expenditure on environment rehab
- Zimplats sinks US$373,6 million into projects
- Zimplats revenue down 23%
- Zimplats invests US$516m on capital projects
Keep Reading
Zimplats said the cumulative spend on the 35-megawatt (MW) solar plant project reached a budget of US$37 million.
“The solar plant was commissioned in August 2024 and has now reached design generation capacity,” Zimplats added.
“A cumulative total of US$32 million has been spent on the Base Metal Refinery refurbishment project, against a total budget of US$190 million.”
During the quarter ended December 31 2024, mined volumes were hampered by poor trackless mobile machinery availability and intermittent interruptions to power supply at the operations, which impeded momentum in the period.
“Volumes declined by 7% year-on-year and were 8% lower than the previous quarter. Production from Ngwarati Mine, which ceased primary operations in June 2024, was successfully replaced by a combination of higher output from the ramp-up in pillar reclamation at Rukodzi Mine and production volumes from Mupani Mine,” Zimplats said.
“6E head grade improved by 1% year-on-year, benefiting from increased tonnage from higher-grade zones at Rukodzi and Mupani mines. Milled volumes decreased by 6% year-on-year and were 8% lower than the preceding quarter because of lower ore supply and constrained operating capacity at the concentrator plants due to mill reline shutdowns.”
The commissioning of the expanded smelter resulted in improved smelting capacity and an increase in concentrator mass pull, the firm revealed.
“Resultantly, concentrator recoveries improved by 1% year-on-year and by 4% from the preceding quarter. In total, 6E concentrate volumes of 158 803 ounces were 5% weaker year-on-year and 4% lower than the preceding quarter,” Zimplats said.
“Optimisation of the 38MW furnace [which was commissioned in the previous quarter] continued during the period, with a total of 47 900 tonnes of concentrate smelted. Hot commissioning of the expanded smelter converters commenced in December 2024 and was in progress by the end of the
quarter.”
The miner recorded a further accumulation of concentrates ahead of the converter commissioning, exacerbated by the furnace inventory build-up on ‘first fill’.
“By the end of the quarter, approximately 30 600 ounces of 6E had accumulated between concentrate and furnace matte,” Zimplats said.
“Of this total, circa 21 500 ounces will be processed to converter matte in the second half of the year, while the remainder will be permanently locked up in the larger furnace.”
Total operating cash costs rose 3% in last year’s fourth quarter to US$139,64 million from the third quarter.