THE country’s largest platinum producer, Zimplats, is targeting to complete its 35MW solar plant project at Selous Metallurgical Complex in October this year.
This will be phase one of the 185MW energy project worth US$37 million.
The solar PV plant phase 1A was approved by the board in March last year with an output capacity of 35MWac.
In its consolidated interim financial statements for the half year ended 31 December 2022, Zimplats chief executive officer, Mr Alex Mhembere, said the plant will achieve commercial operations in October this year.
“The project has an authorized capital budget of US$37 million for Phase 1A of the project. The engineering, procurement, and construction contract was awarded during the half year targeting the commencement of construction in January 2023,” he said.
“The plant will achieve commercial operation in October 2023.”
Mr Mhembere said the refurbishment of the mothballed base metal refinery (BMR) at Selous Metallurgical Complex was approved by the board in November last year with an authorized capital budget of US$190 million.
The completion date is projected to be October 2025.
The project is part of the group’s overall capital investment strategy, which has a budget of US$1,8 billion to be implemented over a 10-year period beginning in 2021.
Of the total investment, US$1,2 billion has already been approved for implementation. Zimplats base metal refinery project dovetails with the Government’s thrust on mineral beneficiation.
Government has over the years been exploring possible methods of ensuring the beneficiation of minerals, with policies targeting mostly platinum, diamonds, gold and chrome mining with the intention to unlock the full potential of the mining sector.
Mineral beneficiation is in line with the Government’s quest for a US$12 billion mining industry by the end of this year. On financial performance in the period under review, Zimplats posted seven percent lower revenue of US$545,5 than prior period largely due to lower sales volumes with actual six element ounces sold at 291 751 against 322 752 ounces in the prior period.
Six elements are platinum, palladium, rhodium, gold, ruthenium and iridium.
Mr Mhembere, said consequently, gross profit margin was 42 percent, an eight percent reduction from 50 percent achieved in the same period last year mainly due to the impact of higher than budgeted operating cost per 6E ounce in the current period.
Profit before income tax for the period at US$221,5 million was 15 percent lower than US$261 million recorded in the same period last year.
The mining firm saw ore mined during the half-year increase by nine percent to 3,8 million tonnes from 3,5 million tonnes for the same period last year. Production increased by six percent to 300 738 ounces from 283 829 ounces in the same period last year mainly due to the introduction of the third concentrator module during the half year. – The Chronicle
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