Source: Commissioning of metal refinery shifted to end of year – NewsDay Zimbabwe April 21, 2016
COMMISSIONING of the much-awaited first base metal refinery in the country has been shifted from July to later this year, Mines and Mining Development Minister, Walter Chidakwa (pictured) has said.
BY VICTORIA MTOMBA
hidakwa told NewsDay that Zimplats is the only company with capacity for smelting platinum.
“They (platinum companies) have written to us saying the platinum prices were depressed and were facing other difficulties and will only be able to commission the base metal refinery by the end of the year,” he said.
Chidakwa said some local companies have capacity for smelting, while others do not.
Commodity prices were on a decline and platinum prices have not been spared. Leading platinum companies have lamented that the decline would affect their output and earnings.
In January 2016 platinum prices declined to $856 per ounce from $1 789 in 2011.
Chidakwa could not give the figures on the output of platinum so far this year, as this was still being compiled.
The platinum refinery was expected to add value to minerals and reduce the importation of raw minerals.
The refinery and a new 600 megawatt power plant were expected to cost an estimated $3,2 billion.
The country produces 430 000 ounces of platinum and has the second largest platinum reserves in the world after South Africa.
The major platinum mining companies in Zimbabwe are Mimosa, Zimplats and Unki. Foreign-owned platinum miners were expected to build the refinery and receive majority ownership in the process.
The mining sector was the major driver of the economy and since the decline of commodity prices the country has been registered reduced revenues from the sector.
Treasury projects that the sector will grow by 2,4% on the back of planned investments and strong performance of gold, chrome, coal, nickel and diamonds this year. In 2015, the sector registered a negative growth of -2,5% from -3,4% in 2014.
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