Zimbabwe Platinum Mines Zimplats, has spent nearly $5 million funding various aspects of its mining operations in Zimbabwe since 2002.The Australia stock exchange listed platinum group has started development of portal 6 replacement mine project.
The mine which was designed to produce 2,2 tonnes per annum, will be replacing Rukodzi and Ngwarati mines, which deplete in 2022 and 2025 respectively.
Full design work and and bankable feasibility study is at an advanced stage and will be submitted to the board for approval. The cost of its preliminary work for portal 6 is $7,5 million and was approved by the Zimplats board in May 2016.
According to the miner’s cash utilisation register for the period 2002 to September 2016, the platinum company spent 40% of its funds, $1 958 billion, on procurement costs. The second largest investment $1 389 billion went towards capital projects.
Government payments such as income tax, royalties, customs duty and PAYE for 12% of the cash utilisation. 9% of the expenditure was spent on employment, while 8% was used to repay the company’s loans. 1%, equivalent to $63 million was used to pay dividends.
The revenues for the mining company for the quarter to September 2016 decreased by 24% to $98,5 million from the previous quarter. $16,2 million profit from operations after royalties was realised during the quarter, from $25,6 million recorded in the prior quarter.
According to Zimplats , portal six accesses 63 million tonnes of potential reserves at a grade of 3,1 g/t. It also delivers 3 million ounces of platinum and 2,4 million ounces of palladium. The portal has a lifespan of 34 years and has the potential to employ 800 full time employs and 200 contractors.
Once commissioned, the P6 project will deliver 6,2 million tonnes of platinum per annum into the Ngezi/Selous metallurgical complex where the material is beneficiated to a smelted matte in the 12,5 megawatt furnace.