Platinum producers commit $100m to refinery

26 May, 2014 - 20:05 0 Views

The Sunday News

ZIMBABWE’S platinum producers have committed $100 million towards setting up of platinum beneficiation facilities, an official has said.
Chamber of Mines president Mr Alex Mhembere said work on the refinery would start by July this year.
This, he said, was part of a follow-up on the mining industry’s beneficiation and value addition symposium that was held in February.
Zimbabwe has three main platinum producers Zimplats, Mimosa and Unki.

Mr Mhembere added that other efforts to promote mineral beneficiation included work done by Murowa Diamonds where they were producing diamonds to the acid clean stage.

The sector is also increasing gold deliveries to Fidelity Printers through centralisation of the gold buying process and availing credit facilities to small-scale and artisanal miners.

“New entrants into chrome mining such as AfroChine, has also set up smelting facilities in Selous,” he said.
Mr Mhembere said a number of companies had submitted their indigenisation plans to Government although lingering regulations remained “a big elephant in the room”.

He said the chamber was planning to adopt vocational training centres in the country but Government must advocate that the VTCs be accorded the same status as Community Trusts under the indigenisation and empowerment regulations.

“This will attract immediate investments to boost the resuscitation of these facilities and thus empower the majority of citizens throughout the country.”

Power and energy, he added, was also a major problem for mining companies as they were struggling to pay high tariffs by Zesa.
“The gold producers have been particularly hit in this regard at a time that prices are heading southwards. This has affected the viability of the already burdened mining industry.”

He said the gold sector was experiencing viability problems due to depressed commodity prices and high operational costs.
“The subsector has witnessed a 31 percent decrease in prices from the beginning of the year. Most gold producers have been struggling to meet their operation costs, characterised by sub optimal electricity tariffs, coupled with labour, capital shortages and high tax charges.”

Because of the challenges gold production had been on a free-fall from 1 230 kilogrammes in 2012 to 1 058 killogrammes in February this year, a 15 percent decrease.

“Without intervention this sector is certainly heading for a dip trough.”

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