eBusiness Weekly
Tawanda Musarurwa
Zimbabwe Platinum Holdings (Zimplats) has said it upped its ore resources tonnage and platinum (Pt) ounces by 37 percent and 33 percent, respectively, on the back of a board approval for a mining method for the Upper Ores , after a successful trial at its Ngezi Mine.
But the move to cease a mining lease area to the Government earlier, had a knock-down effect on the total Mineral Resource tonnages and Pt ounces
In June this year, the country’s largest platinum producer agreed to release to the Zimbabwean Government of Zimbabwe land measuring 23 903 hectares within the group’s mining lease area in support of the Government’s efforts to enable participation by other investors in the platinum mining industry in Zimbabwe.
Following this release of ground, Zimplats now holds two separate and non-contiguous pieces of land measuring in aggregate 24 632 hectares. Consequently, Zimplats applied for and was granted with effect from May 31, 2018, two separate mining leases over the two pieces of land measuring 6 605 hectares and 18 027 hectares respectively.
These mining leases replace the special mining lease which was due for renewal in August 2019.
The two mining leases issued to Zimplats are valid for the life of mine of Zimplats’ mining operations and they secure Zimplats’ mining tenure.
The impact of this move is that the platinum miner’s total mineral resource tonnages and Pt ounces declined by 51 percent and 47 percent respectively relative to June 2017 mainly due to the release of ground north of Portal 10 to the Government (ROGA II) as well as mining depletion during the year.
The company said a 5 percent increase in overall mineral resource grade (4E g/t) is attributed to the exclusion of lower grade ores in the ground released to the Government.
The overall ore reserve grade (4E g/t) decreased by 2 percent due to the relatively lower grades associated with the Upper Ores included in the current estimate. Zimplats’ Open Pit operation was decommissioned in March 2018 and as a result is no longer included in the life of mine plan and Ore Reserves. But it is still included in the Mineral Resources.
Zimplats wins tax dispute
Meanwhile, the Zimbabwe Revenue Authority (ZIMRA) has been ordered to refund Zimplats up to $9,5 million after losing a court case over a tax dispute.
The customs duties matter involved a dispute between the operating subsidiary and the Zimbabwe Revenue Authority (ZIMRA) over whether the operating subsidiary was entitled to claim, and to be granted, certain customs duty rebates that the operating subsidiary was granted between the years 2009 and 2013 and also whether ZIMRA was entitled to impose fines on the operating subsidiary in respect to these customs duty rebates.
“Following the hearing of the case in the High Court in April 2018, judgment was reserved and subsequently a written judgment was issued on September 12, 2018.
‘‘The presiding Judge ruled that the operating subsidiary was not entitled to be granted the customs duty rebates that it had been granted between the years 2009 and 2013. The Judge however also ruled that ZIMRA was not entitled to impose the fines that it had levied on the operating subsidiary.
“As the operating subsidiary had previously settled the disputed liabilities on a without prejudice basis pending the determination of the case, the net impact of the judgment is that ZIMRA is required to repay to the operating subsidiary the amount of the fines imposed by ZIMRA (amounting to $9,6 million).
‘‘The operating subsidiary will be reversing the amount of these fines (US$9,6 million) which had previously been charged to the profit and loss account,” said Zimplats CEO Alex Mhembere.
