eBusiness Weekly
BH24 Reporter
HARARE – Zimbabwe’s largest platinum producer Zimplats Holdings Limited has spent US$78 million towards development of its two mines as it moves to boost production.
Of the total, $54, 2 million has been spent towards the re-development of its Bimha Mine while $20,2 million was used for the development of Mupani Mine, which is the replacement of Ngwarati and Rukodzi mines.
Bimha Mine is Zimplats’ biggest mine out of four other mining units in Ngezi. The mine was shut down as a precautionary measure following the partial collapse of the mining footprint in July 2014 due to regional instability induced by the geological Mutambara Shear.
In an update for the quarter to March 31, 2018 Zimplats said the redevelopment of the mine was on schedule and expected to reach full production this month.
“A total of $54, 2 million was spent on the project and $17, 7 million was committed as at 31 March 2018 against an approved total project budget of $101 million.
“The North crusher and ore conveyancing system are targeted for completion by August 2018, while the south crusher and ore conveyancing system are scheduled for commissioning in May 2019,” said Zimplats.
Zimplats added the development of Mupani was on schedule, targeting ore contact by February 2020.
Full production is expected in August 2025. As at end of the quarter, $20 million had been committed for the project against an approved total budget of $264 million.
Overall, total cash utilisation for the nine months to March 31, 2018 by the group’s mining activities which are carried out by Zimbabwe Platinum Mines Private Limited’s amounted to $426 million.
Of this, procurement costs took up $230 million or 54 percent of the total while employment costs amounted to $54 million.
The mining giant paid $64 million in payments to Government in the form of income tax, additional profits tax, royalty, customs duty tax, pay-as-you-earn and withholding tax.
In the quarter to March 31, total payments to the Government in direct and indirect taxes decreased to $17 million from the $19 million reported in the previous quarter.
Meanwhile, revenue for the quarter rose 21 percent to $158 million compared to $131 million in the same quarter last year.
Compared to previous quarter, revenue was 14 percent weaker on a 16 percent decline in volume for four elements metals (4E) sold. Four elements comprise of platinum, palladium, gold and rhodium,
This was however offset by improvements in metal prices that rose 2 percent to $1 104 per ounce.
