By ZBC Reporter
THE board of the country’s largest platinum mining company, Zimplats, has approved a new capital investment in Zimbabwe worth 1,8 Billion United States dollars to boost production.
The approval by the board announced by the company this week, comes after the signing of a memorandum of agreement for the proposed expansion project witnessed by President Emmerson Mnangagwa in October this year.
In an update to investors, Zimplats revealed that the board had therefore approved the proposals in a move that will result in the company forging ahead towards establishing a base metal refinery.
The development of a new mine, expansion of a smelter, construction of an additional concentrator base metal refinery, sulphuric acid plant and the setting up of a 110 megawatt solar power plant are key features under the expansion project.
In the investors update, the group noted that already, 1,2 billion United States dollars have been raised under the expansion of the project.
Production capacity for the new capital investment that will be spread out over the next ten years starting this year is expected to increase.
The development is also anticipated to boost export volumes and returns.
The company has also revealed that it is not borrowing any money towards the project, with profits being used to finance the entire project.
Firming global commodity prices for platinum, despite effects of Covid-19 in the global commodity markets, have also positively affected viability for Zimbabwe’s platinum mining industry.
During the MOU signing ceremony, government also noted that the investment by the platinum group augurs well for the 2023 target of attaining 12 billion US dollar mining economy and the 2030 vision of an upper middle income society.