ZIMBABWE’S upcoming platinum mine projects and upgrades to existing opera- tions valued a combined US$10 billion will position the country as a global platinum powerhouse, a Cabinet Minister has said.
According to the World Platinum Investment Council (WPIC), Zimbabwe is considered to have the world’s second-largest known platinum group metals (PGM) deposits, after South Africa, on the mineral-rich Great Dyke.
However, the country has three PGM produc- ers, Zimplats, Unki and Mimosa and in addition to existing producers, new PGM projects are at different stages of implementation.
Karo Mining Holdings, which signed a $4,2 billion platinum deal with the Zimbabwe Gov- ernment in 2018, and has commenced opera- tions targeting first production by July 2024 will become the fourth active platinum producer in Zimbabwe. Other platinum projects such as Bravura Mining Consortium, Todal Mining Limited, and the Great Dyke Investments (GDI) are also on course to come into production soon.
Mines and Mining Development Minister Winston Chitando told journalists at the Karo’s platinum mining commencement works cere- mony that Zimbabwe had significant platinum resources and the industry is the fastest growing sector in the country.
“We have other countries who have been in platinum production for longer, but their indus- tries are now mature, but ours is fast growing.
“We believe that Zimbabwe platinum pro- duction is poised to become a formidable force in the world where you can no longer talk about platinum production without mentioning Zim- babwe,” he said.
Minister Chitando said looking at the exist- ing three players, Mimosa is expanding, Unki is expanding, and so is Zimplats.“We are also looking at new productions, Todal is coming into the scene as well as Bravura and GDI.
Karo Mining has already commenced works and by July 2024 we will see the first production. In addition, there are also other new concessions coming,” he said.
The minister indicated that from a geological
perspective, Zimbabwe was very competitive compared to other geological formations in the world.
“With the cyclical nature of mineral prices, there is need for you to be on the lower cost of production side that will enable you to sustain production in times when the prices are low and we believe that in platinum production Zimbabwe is on the lower cost quarter due to the geological formation supported by a local skilled base,” he said.
Zimbabwe is envisioning a US$12 billion min- ing industry by 2023 which is a key enabler of Vision 2030 of achieving an upper-middle-in- come economy by 2030, while leaving no one and no place behind.
Of the US$12 billion, gold, platinum, and diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively.
Other minerals such as chrome, iron ore and carbon steel will contribute US$1 billion while coal and hydrocarbons will do the same. Lithium will contribute US$500 000 while other minerals will add US$1,5 billion.
Minister Chitando said the platinum mining sector’s contribution towards the Government’s vision will improve from current level, as the various improvements and new projects will be in production before 2030.
“The growth is mainly anchored on explo- ration, opening up of new mines, as well as expansion of existing platinum projects.
“Therefore, the Government will always ensure there is an enabling environment that supports business growth riding on the mantra Zimbabwe is open for business,” he said.
The country’s mining industry represent- ative body, the Chamber of Mines of Zimba- bwe (CoMZ) in its recent report said the mining industry continues to be an important sector in the Zimbabwean economy and the Government’s economic blueprint, the National Development Strategy 1 (NDS1), accords the mining industry a central and important role.
The Chamber’s president Mr Collins Chi- bafa said the mining industry contributes 73 percent to foreign direct investment, 83 percent to exports, 19 percent to government revenues, 2 percent to direct formal employment, and 11 percent national income (DGP and GNI).
He said these levels of contribution are on the upper end of the contribution ranges for Middle Income and Lower Income economies and the Zimbabwean mining industry’s contribution to the economy is generally higher than the aver- age for Sub-Saharan countries with significant mining activities.
Economist Dr Prosper Chitambara said due to the investments, Zimbabwe’s platinum production will improve significantly to match the levels of South Africa and Russia.
“This is good for the economy in terms of the whole macro-economic variables such as production output, economic performance, employment creation and generation of foreign currency,” he said.
He added that the country will need to con- tinuously enhance the processing capacity to preserve as much value within the economy.
However, Minister Chitando said existing platinum producers commissioned a study to
investigate the possibility of putting up a base metal refinery from a technical and financial aspect. He said the results of the study were released to the government last year and it indi- cated that there was now sufficient throughput available to put in a base metal refinery.
“Subsequent to that the three producers came together and signed a US$1,7 billion agreement with the Government which the investments among other things include setting an additional concentrator and capacity and also a base metal refinery.
“So there are plans, with Zimplats taking the lead to put up a base metal refinery. Karo Mining as an independent company and other companies who were not on the initial study are free to put their own base metal refinery or join in,” he said.
The minister noted that from a government perspective, the base metal refinery has been confirmed, hence the government would now want to see all material beyond the matte go through a base metal refinery locally. – The Herald
