ZIMBABWE’S largest platinum miner, Zimplats, has spent US$400 000 on exploration projects and a further US$1.1 million committed to the same as at 30 September.
In a quarterly report for the period ended 30 September, the mining firm said exploration activities included mineral resource evaluation, comprising approximately 6 103 metres of surface diamond drilling on mining lease ML 36.
“A total of US$0.4 million was spent on exploration projects, with a further US$1.1 million committed as at 30 September 2022,” it said.
Giving a financial update, Zimplats said total operating cash costs increased by five percent from the prior quarter, driven mainly by a two percent increase in tons mined and inflationary pressures.
“A total of US$4.3 million was transferred from operating costs as volumes mined during the quarter exceeded the tons milled. In addition, the quarter closed with stocks of concentrates that will be smelted in the second quarter.
“This resulted in the cost of metal produced increasing by two percent compared to previous quarter,” reads part of the report.
On major projects update, development of Mupani Mine and the upgrade of Bimha Mine to replace Rukodzi, which was depleted in FY2022, Ngwarati, and Mupfuti mines, which will be depleted in FY2025 and FY2028 respectively, progressed well during the quarter.
To that end, a total of US$252.2 million has been spent on the project to date and US$82.4 million has been committed against a project budget of US$468 million.
The third concentrator plant, which will increase milling capacity by 0.9 million tons per year was commissioned during the quarter.
“Cumulative project expenditure as at the end of the quarter amounted to US$91.3 million, with US$9.3 million committed against a project budget of US$104.1 million.
“The plant is expected to ramp up production to design capacity by the end of the second quarter. Implementation of the US$521 million smelter expansion and SO2 abatement plant project is on course, with US$28.8 million spent and US$215 million committed as at end of the quarter.”
The solar plant is being constructed at Selous Metallurgical Complex and is targeted for completion in FY2024.
Overall, the project has four implementation phases with the last phase scheduled for completion in FY2027 at a total project cost estimate of US$201 million, the mining group said.
Recently, in its 2022 integrated annual report, Zimplats projected an exciting future as it rolls out a staggering US$1, 8 billion in capital projects over 10 years creating opportunities for local employment.
This comes at a time when a bankable feasibility study for the resuscitation of the suspended base metal refinery (BMR) project at the Selous Metallurgical Complex has already been completed, it said. – The Chronicle
