Zimplats to plough $80m into one of Zim’s largest mines after collapse and reconstruction

Impala Platinum’s Zimbabwe unit Zimplats is going to plough more than $80 million into its Bimha mine just after completing a nearly $100 million reconstruction project there following a major collapse eight years ago.

The Bimha mine, which accounted for about half of Zimplats’ production, collapsed in July 2014, forcing the company to close and reconstruct it. The mine is one of the largest in the country. It had to additionally invest in replacement production projects.

The reconstruction program for the mine has now been completed and Zimplats has embarked on a project to upgrade the Bimha mine at an additional cost of $81.7 million, chief executive officer, Alex Mhembere said this week.

Alex Mhembere, Zimplats, chief executive office.

“The redevelopment of Bimha Mine was completed within budget at $99.8 million. The upgrading of Bimha Mine is progressing well, targeting achievement of 3.1 million tonnes per annum in the first quarter of FY2024,” he said.

Zimplats is also upgrading the Mupani mine, which is targeted to produce 2.2 million tonnes per annum on completion in 2025, ramping up to 3.6 million tonnes per annum in 2027.

Zimplats had invested as much as $166.9 million on the project as at the end of December from an approved project budget of $388 million.

Revenue generation for Zimplats during the half year period to the end of December 2021 declined 13% to $585 million due to “negative revenue from movements in commodity prices arising on pipeline sales following the decrease in average metal prices” comparative to the previous year’s contrasting period.

Gross revenue per six element (6E) ounce for the half year at $1 813 was 19% lower than the $2 241 attained for the same period in 2020.

Zimplats said the gross revenue was however, this “was partly offset by an 8% increase in 6E ounces sold from 301 225 ounces in the prior period to 322 752 ounces because of the sale of matte stockpiled due to an administrative delay in the export” of production.

Ore mined by Zimplats for the period also reduced by 5% to 3.5 million tonnes mainly as a result of production disruptions at Mupfuti Mine.

The cost of sales of around $294.9 million marginally declined compared to the previous year’s costs of $297.4 million. As a result of this, gross profit margins for the period amounted to 50%, representing a 6% reduction from the 56% margins achieved in the same period last year. – www.news24.com/fin24