eBusiness Weekly
Full year production estimates for Zimplats 270k to 280k platinum ounces in concentrate
Mimosa 115 000 to 125 000 platinum ounces in concentrate
Business Writer
The development of Zimplat’s Mupani Mine to replace Ngwarati and Rukodzi mines is running well, targeting ore contact three months ahead of schedule by August 2019, and full production in August 2025, parent company Impala Platinum Holdings (Implats) has said.
The South Africa based parent company said the project is progressing ahead of schedule and on budget. It is expected to be complete by November 23, 2019 at a total cost of $264 million.
To date, the miner has spent $51 million on the project up from the $37 million it had spent by June 2018.
The spending is 19 percent of the total spend. As at 31 December 2018, project completion was at 22 percent up from 16 percent in June 2018.
Meanwhile, Zimplats sustained its operational performance for the six months to December 2018 and achieved tonnes milled of 3,31 million tonnes that was consistent with the prior period, (H1 FY2018: 3.33 million tonnes), with all mining units delivering to plan.
Notwithstanding a marginally lower PGE head grade of 3.48g/t (H1 FY2018: 3.49g/t), platinum in matte production was sustained at 135 400 ounces (H1 FY2018: 136 200 ounces).
Unit costs decreased by 3,2 percent in dollar terms to US$1 293 per platinum ounce in matte slight lower than comparative prior year’s US$1 336 per platinum ounce in matte, on strong cost controls and sustained volumes.
Capital expenditure increased 43,8 percent to US$46 million, mainly to fund the redevelopment of the Bimha Mine, which has returned to full production, and additional spend on the development of Mupani Mine.
Another Implats owned mine, Mimosa sustained a strong production performance in line with its design capacity.
Tonnes milled were maintained at 1.41 million tonnes. The PGE head grade declined marginally to 3.83g/t (H1 FY2018: 3.85 g/t) due to planned mining in lower‐grade areas, which resulted in platinum in concentrate dipping slightly to 61 700 ounces (H1 FY2018: 63 000 ounces).
Inflationary pressures and slightly lower production volumes saw unit costs rise 7 percent to US$ 1 582 per platinum ounce in concentrate (H1 FY2018: US$ 1 479).
Capital expenditure increased 25 percent to US$25 million to fund scheduled fleet replacement and development into the Mtshingwe block to sustain mining flexibility.
Mimosa continues to consult with the government of Zimbabwe on a range of important investment and regulatory considerations and remains confident that mutually beneficial outcomes can be secured.
Market Outlook
According to Implats, the platinum market recorded a surplus of 580 000 ounces during 2018, with the palladium market experiencing a fundamental deficit of 270 000 ounces.
“Expectations for palladium demand continue to be revised upwards as tightening emission standards result in increasing and sustained fundamental deficits.
‘‘While the near term for platinum remains uncertain, strong industrial demand, coupled with the introduction of heavy‐duty legislation in both India and China and growth from the nascent fuel cell sector, indicate a tightening market in the medium term.”
