Zimbabwe says target for platinum refinery unachievable

via Zimbabwe says target for platinum refinery unachievable –  Mineweb.com by Godfrey Marawanyika (Bloomberg) 09 Jan 2014 

The state compelled platinum producers to set up a refinery for the metal in the country by 2015, but reckons this goal may be unachievable.

Zimbabwe, which last year compelled the world’s biggest platinum producers including Anglo American Platinum Ltd. to set up a refinery for the metal in the country by 2015, said this goal may be unachievable.

“I am not sure if it will be possible to achieve that deadline since we are left with just one year,” Deputy Mines Minister Fred Moyo said by phone today from the capital, Harare. “This depends on technology, funding availability, skills and as well as timing. We are producing around 400,000 ounces but setting up a refinery may cost a billion, $2 billion, but this is dependent on our production levels.”

President Robert Mugabe in November threatened to halt exports of the precious metal unless Impala Platinum Holdings Ltd., Aquarius Platinum Ltd. and Anglo American Plc’s platinum unit set up a facility in the country, according to the state- controlled Herald. They’re studying building a $3 billion complex, the Platinum Producers Committee, which represents the producers, said in October. The companies say Zimbabwe doesn’t produce the 100 megawatts of power the refinery would need.

Moyo spoke after government officials met with the Chamber of Mines, which also represents the platinum producers, about the southern African nation’s plan to introduce a 15 percent levy on unprocessed exports of the metal. Zimbabwe has the world’s biggest reserves of platinum after neighboring South Africa, where all its ore is now refined.

The government and the mining companies agreed that they should “commit ourselves to value addition in the diamond, platinum and chrome sectors,” Moyo said. Deputy Finance Minister Samuel Undenge was also present at the meeting.

–Editors: Ana Monteiro, Tony Barrett

To contact the reporter on this story: Godfrey Marawanyika in Harare at gmarawanyika@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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5 comments on “Zimbabwe says target for platinum refinery unachievable
  1. Zimbo says:

    Ja!!! Juste bild de refinary. We weel worri about de power later…… Typical Zimbo government thinking. I feel so sorry for my country.

  2. Priscilla says:

    Why doesn’t he get Kasukwere and those Zanu PF youth to build the refinery? Surely they can do it. It’s too easy!

  3. Grace Marufu jnr says:

    Zveforce hazvishandi izvi. kupedza nguva. Nagaivake ZANU yacho and provide tolling services to the miners. It will be lucrative business for the party which said they want to venture into mining and mineral processing in another story. Zvinoda cash izvi. chibhakera does not solve anything.

  4. Greyhora says:

    100MW seems far fetched for such a relatively small production of 0.4m ounces, unless the refinery is to be designed to cater for increased ore supply and mining capacity. E.g. Lonmin refinery uses approx half of that (60MW) to produce 2m ounces!!!
    However, s refinery is indeed a good idea and the quantities produced in Zim justify the capital costs, in the long term.

  5. gandanga says:

    Welcome to project management one on one with Chinotimba!

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