Platinum giant Mimosa has revealed that they have put the North Hill expansion project on hold due to depressed prices of Platinum Group Metals (PGMs).
Addressing the media during a media tour held at the mine yesterday, the mine’s General Manager Stephen Ndiyamba said for now the company`s focus is on optimizing their current operations at South Hill to ensure that they navigate through the current phase.
“We are currently mining and processing 2.8 million tonnes of ore to produce 120,000 ounces of platinum or 240,000 ounces of 4Es (Platinum, Palladium, Rhodium, Gold) annually. We produce a concentrate that contains a total of ten metals (platinum, gold, palladium, rhodium, ruthenium, iridium, nickel, copper, cobalt, silver).
“The mine is currently performing well on the safety and production fronts. Our current challenge is that of depressed metal prices which has an impact on operations and ability to conduct planned projects.
“We have embarked on two key projects to enhance sustainability of our mining operations.
“The first one is the plant optimization project which entails enhancing efficiencies in the concentrator to realize optimal processing and metal recoveries.
“The project has already benefitted close to 700 members of the local community who have been engaged as contractors.
“The project has been delivered at a cost of USD 38 million and was commissioned during the first half of the year and I am glad it is already meeting our expectations,” he said.
Ndiyamba said the planned North Hill shaft has been affected by cost containment measures triggered by current low prices of PGMs on the global market.
“We had planned to embark on a project to extend the life of mine by 12 years through construction of a new shaft at North Hill.
“In light of the depressed PGM prices and their impact on operations we have taken cost containment measures to safeguard viability. As a result, we have made a decision not to embark on the North Hill project.
“For now, our focus is on optimizing our current operations at South Hill to ensure that we navigate through this phase of low metal prices.
“Mimosa remains committed to investments in Zimbabwe and in particular building mutually beneficial relationships that create lasting legacies,” he said.
He added that as part of Mimosa’s strategic initiative and commitment towards environmental sustainability, and responsible disposal of waste, construction of a new 165-hectare clay lined Tailings Storage Facility (TSF4) is underway to replace the existing facility which is nearing the end of its life.
“This includes construction of a 1.1 million cubic meter water containment facility. The new facility is designed to handle mine waste materials or tailings for the next 20 years and takes into account any future expansions the mine may embark on.
“The construction phase has employed a total labor force of 385 people with most of the general hands being employed from the local community. The project is now at 90 percent completion and will be commissioned in April 2024,” he added.
The TSF4 is budgeted at US$ 75 million dollars.
Located 32 kilometres west of Zvishavane town, Mimosa is the oldest PGM miner in Zimbabwe with operations that date back to the 1920s.
