Zimplats on platinum exports ban - ZIMPLATS, the country's largest platinum miner, has said it is prepared to work with Government to boost production and ensure that there is adequate feedstock for the establishment of a smelter and a refinery in Zimbabwe. There are three platinum mines in Zimbabwe - Zimplats, Mimosa and Unki - and Government last week announced that it would withdraw export licences from miners exporting raw platinum to promote value addition. The move, that has already been endorsed by Cabinet, follows concern over untaxed exports of by-products refined from platinum.

This would therefore force the platinum mining companies to set up refineries and smelters in Zimbabwe.

Mines and Mining Development Deputy Minister Gift Chimanikire said the withdrawal of export permits was in line with a Cabinet resolution that all minerals should be value added.

The ban would not only affect platinum, but all other minerals exported from Zimbabwe.

In April this year, Government banned chrome ore exports to promote value addition.

However, low smelting capacity and low local demand has negatively affected the move as miners are now stuck with huge stockpiles of the mineral.

Zimplats deputy chairman Mr Muchadeyi Masunda said the company's offer to help Government through the Zimbabwe Mining Development Corporation to increase the country's platinum production was still open.

"We need to first of all raise the current levels of production to justify such a huge investment. As you are aware, Zimpats in 2006 released ground with 36 million ounces worth of resource to the ZMDC.

"To date there has not been production on those claims, and our offer is still open to provide technical assistance to ensure that we increase the feedstock that is required if we are going to set up a refinery.

"This will spur us to work with even more vigour to set up a base metal smelter and refinery," said Mr Masunda.

Zimplats head of corporate affairs Mrs Busi Chindove said: "'No comment at this stage apart from the fact that Zimplats has put on record its desire for local value addition.

To this end a US$30 million feasibility study is underway so that we have a better understanding of what is required for sustainable beneficiation. The feasibility study is practical demonstration of the company's desire to value add beyond the current convertor matte that it exports."

The current combined production levels from the three platinum mines are currently below 500 000 ounces and this has been viewed as inadequate for the establishment of a refinery.

Market watchers have put the cost of establishing a refinery at US$2 billion, a figure that they said could be raised if the mining firms ramped up production within the next five years to ensure that platinum concentrate is no longer sent to South Africa for processing.

In South Africa beneficiation of primary mineral products has been singled out as a central policy target for the mining industry but mining companies have said beneficiation is often not core to the business of mining and pushing the issue could force some of the smaller miners to close down.

Economic analysts have stated that notwithstanding the ongoing economic debates in relation to the viability of in-country beneficiation, beneficiation continues to present a significant opportunity both in terms of unlocking the wealth of the countries' minerals and in the creation of employment for local populations.

Fanuel Kangondo

The Herald/03/01/2012