Mimosa lines up $40m expansion project in next five years

via Mimosa lines up $40m expansion project in next five years – NewsDay Zimbabwe 3 November 2014

BULAWAYO — Zimbabwe’s second largest platinum mine, Mimosa, has lined up a $40 million expansion project in the next five years at its Zvishavane mine, which will extend its lifespan by 20 years.

Mimosa is jointly owned by South African miners, Aquarius Platinum and Impala Platinum, the two largest platinum producers in the world.

In its annual Report for 2014, Aquarius Platinum said the expansion project would see operations extended to the Mtshingwe block.

“This will entail on-reef development. The total cost of the revised project is $40 million over five years and includes additional mill capacity and an upgrade to the crusher, additional fully equipped production teams and a ventilation upgrade,” the group said.

It added the development from the existing decline shaft began in July and was expected to take four years to complete by which time it would have reached the Mtshingwe axis.

Production is expected to start in 2017.

Aquarius said total capital expenditure at Mimosa for the year amounted to $34 million.

“Expenditure was incurred mainly on the purchase and maintenance of mobile equipment, drill rigs and LHDs, the conveyor belt extension and down-dip development, the milling and flotation project and the refurbishment of the primary jaw crusher.”

During the year, Mimosa retrenched 103 employees and 34 managers on a voluntary basis, about 8% of its total labour force.

“The reduced number of employees will contribute to an estimated decrease in costs of five percent overall,” Aquarius said.

Mimosa’s fourth quarter production of more than 60 000 PGM ounces was the mine’s highest ever level production, it added.