Maravi

(NEWZIMBABWE) Implats may set up Zimbabwe refinery

Implats may set up Zimbabwe refinery
10/04/2012 00:00:00
by Business Day

PLATINUM producer, Zimplats is reported to have agreed to set up a refinery in Zimbabwe as pressure mounts on platinum producers to beneficiate minerals inside the country.

Zimplats deputy chairman Muchadeyi Masunda said the company had committed to setting up a refinery in Zimbabwe. "Despite all that has happened … the smelter and refinery project is on course." Current production levels are considered too low to sustain a refinery. The platinum output of the top platinum producers in Zimbabwe is below 500000oz.

However, Zimplats has revealed that it intends to ramp up its output to 270000oz from 180000oz after the successful implementation of its phase two expansion project.

Mimosa, jointly run by Implats and Aquarius Platinum, on the other hand, is planning to double its production to 200000oz a year from 100000oz.

Masunda said Zimplats "initially set aside $500m for the beneficiation project" and was assessing "the kind of infrastructure required" for the refinery.

He said it was necessary for Zimplats to "be assured of adequate stockfeed going forward".
Zimbabwe’s decision to push the beneficiation of raw materials is based on job preservation and creation.

However, Amplats CEO Neville Nicolau has previously said platinum miners could look at setting up an "industry refinery" in Zimbabwe in about five years.

Zimbabwean analysts emphasised that Zimplats would require about $2bn to set up the refinery, which "would be difficult under current conditions" that are fraught with legislative hurdles.

Others said, however, that Zimplats could agree to set up the refinery under phase three of its expansion project.

This comes as Zimbabwean officials said last week that the government was looking into complaints by the mining industry that ground rentals, fees and taxes would curtail production and drastically reduce profitability.

"The ministry is presently reviewing the impact of these fees on the mining sector," mines ministry permanent secretary Prince Mupazviriho was quoted saying.

Zimbabwe hiked pre-exploration fees for most minerals by as much as 8000% in January, while registration charges for platinum and diamond claims rose to $2,5m and $5m, respectively.

Labels: IMPALA PLATINUM, INDIGENOUS DIAMOND BENEFICIATION STRATEGY, MUCHADEYI MASUNDA, PLATINUM, ZIMPLATS

posted by MrK @ 3:20 PM