Zimplats competes Ngezi Phase 2 expansion project

Published: 05 September 2017

ZIMBABWE'S largest platinum producer, Zimplats, says Ngezi Phase 2 expansion project is almost complete and is expected to start production next year.

Implats' Zimbabwe unit said $458 million has been invested as at the end of the first half of this year.

"The Ngezi Phase 2 expansion project is now substantially complete with total expenditures to date, including commitments, of $458 million," said Zimplats in a statement accompanying their results for the year to June 30, 2017.

Zimplats is also working on the development of Mupani Mine, which is expected to reach full production of 2, 2 metric tonnes per year in August 2025 at an estimated total project cost of $264 million.

Mupani Mine is the strategic replacement for Zimplats' two mines - Rukodzi and Ngwarati that deplete in 2022 and 2025 respectively.

"The bankable feasibility study for Mupani Mine, the replacement for Rukodzi and Ngwarati mines that deplete in FY2022 and FY2025 respectively, was approved by the board in November 2016.

"The box cut was completed and decline development commenced during the year. A total of $11 million was spent on the project and $1,1 million committed as at 30 June 2017," said Zimplats.

The group also said the Selous Metallurgical Complex Base Metal Refinery refurbishment project remains constrained by cash flow challenges arising from depressed metal prices. The total project expenditure as at 30 June 2017 was $23, 4 million.

Zimplats reported its revenue for the year to June 2017 rose 9 percent to $512 million boosted by a record ore production of seven million tonnes compared to six million achieved last year on the back of the resumption of production at Bimha Mine, which contributed 916 000 tonnes during the period.
- BH24

Tags: Zimplats,