Zim platinum mining to benefit from SA mining woes

Published: 16 January 2014

LOCAL miners are in a strong position to try and close the platinum supply gap after revelations that South Africa, the top world platinum producer's mining operations are becoming relatively more expensive.

Finance Minister Patrick Chinamasa in his 2014 budget presentation said South Africa's high cost of production had placed Zimbabwe at an advantage in terms of investments which are expected to boost production in 2014 and beyond.

Chamber of Mines president, Mr Alex Mhembere, said the expansion of various platinum mining operations in the country would allow Zimbabwe to take advantage of the supply deficit by ramping up national output.

"This puts Zimbabwean miners in a strong position to try and close the platinum supply gap and the three operating platinum producers are operating at 100 percent capacity," said Mr Mhembere.

Zimbabwe has three active platinum mines; Zimplats in Ngezi, Mimosa in Zvishavane and Unki in Shurugwi. Mr Mhembere said Zimbabwe had what it takes to meet the projected 2014 production target of 14 000 kilogrammes, an eight percent increase from last year's figure of 13 000 kilogrammes.

He said platinum miners needed to focus on cost management, employee relations and productivity to attract more investment into the sector.

"In addition they need to continue to engage Government to improve the attractiveness of the country for investment," said Mr Mhembere.

According to South African media reports, the country's production is either going to stagnate or decrease further.

Experts said the platinum industry in South Africa was in crisis for a second year with no end in sight due to stagnant prices for platinum group metals and the ever increasing wage bill which have both contributed to the market's unrest.

Meanwhile, platinum miners, Zimplats are expected to complete their other phase two expansion projects by the first quarter of 2014 to further enhance platinum production.

On completion of its phase two expansion programmes, Zimplats plan to have other new expansion projects to ensure sustainable growth and development in its platinum production.

- sundaynews