Govt steps up platinum value via addition efforts

Zimbabwe-Africa  (May 6)  The Government has stepped up its efforts of adding value to platinum, one of the country’s strategic minerals as it forges ahead to accrue potential from its resources.

Mines and Mining Development Minister Winston Chitando said following the signing of a $4,2 billion deal between the Government and a Cypriot investor, Karo Resources to develop a platinum mine and refinery another investor has approached Government with the intention of further processing the mineral.

“We resigned the $4,2 billion deal with Karo Resources, it included the setting up of a base metals and precious metal refinery but we are actually going further to see value addition of the platinum beyond the precious metal stage. Next week I am having a meeting with a potential investor who would like to work on value addition on platinum, specifically the production catalytic converter in the country so we are now talking beyond the refinery stage,” he said.

Work at the Karo Resources project has been earmarked to start in July, with the first output of platinum group metals expected in 2020, aiming to reach 1,4-million ounces annually within three years.

Located in the Mhondoro-Ngezi platinum belt, west of Harare, where Zimplats has operations, the project will include a coal mine and power station to produce electricity for the smelter, and should employ 15 000 people when fully implemented, according to Karo head Mr Loucas Pourolis.

Zimbabwe has the second-largest platinum reserves in the world after South Africa.

The metal is the third largest foreign currency earner for Zimbabwe after tobacco and gold, but it is still being exported in a semi-processed state to South Africa for refining.

As a result, the Government ordered platinum miners to come up with plans to construct a platinum refinery as part of requirements under the value addition and beneficiation cluster in the country’s economic blueprint, Zim Asset.

Zimbabwe has three established platinum producers — Zimplats, Mimosa and Unki — who have been producing approximately 13 tonnes (485 564 ounces) of platinum per year, a figure which could reach 20 tonnes (705 479 ounces) by 2020 if producers invest more in production.

Meanwhile, the Government has devised a major turnaround strategy that would see Shabanie Mashava Mines resuming operation at full throttle and creating more than 2 000 jobs by midyear next year.

TheSundayNews