In a move to navigate the challenges posed by the current downturn in metal prices, Mimosa, the platinum miner, has allocated a substantial investment of up to $75 million towards enhancing its Tailing Storage Facility. This financial commitment underscores the company’s dedication to optimizing its existing operations at South Hill, prioritizing operational efficiency amid the prevailing low metal prices.
Addressing the impact of the price decline on Mimosa’s operations, General Manager Stephen Ndiyamba revealed that the company has implemented decisive measures to ensure its continued viability. One consequence of the challenging pricing environment is the temporary suspension of a project aimed at extending the mine’s life by 12 years through the construction of a new shaft at North Hill.
The platinum group metals (PGM) market, crucial for automotive catalysts, has witnessed a significant downturn this year, with platinum prices experiencing a 15% decrease in 2023. Palladium, a key component for emission control, has also seen a sharp decline from its peak above $3,000 in March 2022, currently trading at around $1,127 per ounce. Additionally, rhodium, a scarce and corrosion-resistant PGM, reached a peak of nearly $30,000 per ounce in 2021 but is presently trading at approximately $4,500.
Ndiyamba said the mine will not slow down operations as it seeks to meet its business plans at the current metal prices while managing their cost to ensure they remain profitable.
Ndiyamba emphasized Mimosa’s commitment to sustaining investments in Zimbabwe, fostering mutually beneficial relationships, and leaving enduring legacies. Recognizing the finite nature of the resources extracted, the company has demonstrated significant investment in local communities over the years, spanning health, education, water and sanitation, infrastructure, and sustainable projects.
Mimosa currently mines and processes 2.8 million tonnes of ore to produce 120,000 ounces of platinum or 240,000 ounces of 4Es (Platinum, Palladium, Rhodium, Gold) annually.
The mine produces a concentrate that contains a total of ten metals (platinum, gold, palladium, rhodium, ruthenium, iridium, nickel, copper, cobalt, silver).
