Miners agree to platinum refinery

via Miners agree to platinum refinery | African Business | BDlive by Brian Latham  MARCH 03 2014 

Platinum mining companies had agreed to build a refinery in Zimbabwe after initially saying it would not be economically viable, the government said on Friday.

“They have pledged commitment,” Finance Minister Patrick Chinamasa told a mining conference in Victoria Falls. “I am told they are going to co-operate.”

Zimbabwe has entreated platinum producers to build a refinery to raise the value of its exports and drive economic recovery.

An agreement would mark a change in stance from the Chamber of Mines’ producers group, which said last month the platinum industry needed as much as $5.3bn to meet output targets and build refining units.

Two companies are being considered to construct the plant, Mines Minister Walter Chidakwa said on February 18, without naming them.

Anglo American Platinum, Aquarius Platinum and Impala Platinum Holdings, the biggest miners of the metal in Zimbabwe, have declined to comment on the shortlisting process. Their local units would be compelled to send ore mined in the country to the facility.

Asked what kind of refinery was discussed and under what conditions Implats would consider another big capital investment in Zimbabwe, CEO Terence Goodlace said: “The expression of interest letter sent out (by the government) in January referred to base metals and precious metals. We are not at liberty to talk too much about what we are discussing but, from a conditions perspective, there are opportunities for us.”

Zimbabwe, with the world’s largest-known platinum reserves after SA, also wants to expand gold mining. It plans to raise annual output to 50 metric tonnes within five years, to be one of the top five producers in Africa, Mr Chinamasa said.

Bloomberg, Staff Writer

 

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9 comments on “Miners agree to platinum refinery
  1. Jono Austin says:

    Build a refinery costing millions-are they utterly mad!! The stupidity of whoever does this is mind blowing. Do they honestly think ZANUPF will keep their side of the agreement??!

    • Zombi says:

      That a refinery costs millions is irrelevant. The profits from the businesses and the alignment with national interests justify this (jobs, beneficiation, economic development, and the like).

      The biggest risks are our governments political uncertainty, unclear and often disagreeable policy directions, property rights, rule of law and the like.

      But as most real businesses say, they can work with any government. They just need to know the nature of that government and manage things from there.

  2. John Thomas says:

    Chinamasa is well on his way to his realty check.

  3. Jack says:

    The government gets to chose who builds it but the miners have to pay for it and use it. What could possibly go wrong?

  4. senzachena says:

    Pity that there will be no electricity to run this plant once it is built. Another ZANU white elephant

  5. Jrr56 says:

    I am sure the miners will agree that they put up 49% after the 51% share holders stump up their money..

  6. Mixed Race says:

    I will only believe it once the statement is definite and not in inverted comas.This is still on discussion process with no proper end result.This could take 5-10 years before the refinery is built judging by the way negotiations are going.
    We have so many proposed electricity generation projects like-Batoka Gorge,Gwanda Solar and many individual generators.We have to wait and see who is capable of adding about 300 megawatts and more to our dying ZESA grid before thinking of this refinery.
    Its unfortunate that we have too many day dreamers when it comes to highly technical projects.

  7. gorongoza says:

    And will they get the power for the refinery, when they can even support a non-existant industry as it is now?

  8. Jono Austin says:

    Zombi, millions are irrelevant!! I stand corrected-the refinery is billions and it is VERY relevant when it’s your money!! In fact if it’s irrelevant let the Government stump up the money and the mining company can build it-in other words the Government finances and the mining company provides the expertise.

    One thing is certain-going by ZANUPF’s track record there is a very real danger that should the mining company finance the refinery, ZANUPF will change the goalposts and have the chefs grab the mine/refinery and tell the investor to get out. WE KNOW zanupf are thieves-just look at the news currently with salarygate,Marange diamonds etc. Zanupf should NEVER be trusted.

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