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Zimplats
Zimplats Holdings Limited (Zimplats) is 86.9% owned by Implats and is located on the Hartley Geological Complex on the Zimbabwean Great Dyke south-west of Harare. In FY2007 the operation produced 96,500 ounces of platinum in matte and plans have been approved to increase annual production to 160,000 ounces of platinum by 2010.
Zimplats currently operates both an opencast and an underground mine at Ngezi. The Selous Metallurgical Complex (SMC) where the ore is concentrated and smelted is located some 77 km north of the mine. The company also owns the Hartley Platinum Mine situated at the SMC which is currently under care and maintenance.
History
Zimplats was established by Delta Gold Limited (Delta) in 1998 to take over its platinum interests. In May 1999 the company purchased BHP's interests in the Hartley Platinum and the Mhondoro Platinum Joint Ventures which included a concentrator and smelter. Zimplats initiated the Ngezi/SMC project in 2001 and the first converter matte was exported in April 2002.
In 2001 Implats acquired a 30% stake in Zimplats from Delta in a joint venture with ABSA Bank Limited of South Africa (ABSA). Implats held pre–emptive rights over ABSA’s 15% stake as well as a 30% direct stake in the then Makwiro Platinum (Pvt) Limited. The remaining 70% was held by Zimplats. In August 2002, the Group acquired a further 21% stake in Zimplats from Aurion Gold and in June 2003 purchased ABSA’s 15% stake. Implats subsequently made an unconditional cash offer to minority shareholders in Zimplats.
Currently the group holds 86.9% as a result of the buyout of minority holders and the receipt of 14.9 million ordinary Zimplats shares issued in 2006 on the sale of its 30% stake in Zimbabwe Platinum Mines (Pvt) Limited (formerly Makwiro Platinum (Pvt) Limited) to Zimplats.
In May 2006 Implats reached a landmark agreement with the Government of Zimbabwe which ensures that the ground required for a steady state 1 million ounce per annum platinum mine with a fifty year life is secured under two mining licence regimes. In terms of the agreement Zimplats released 36% of the company’s resource base amounting to 51 million ounces of platinum in return for empowerment credits and/or cash.
Geology
Although platinum was first discovered in the Great Dyke in 1918, its exploration was overshadowed by that of the Bushveld Complex in South Africa. Focus has returned to the Great Dyke in recent years, following the increase in demand for platinum and given that much of the shallow resources in the Bushveld Complex are spoken for.
The Great Dyke is a layered complex similar to that of the Bushveld Complex. It extends for 550km and has a maximum width of 11km. Within the Great Dyke four geological complexes are known to contain PGM and base metal deposits. These are the Wedza Complex (Mimosa – Aquarius and Implats), the Selukwe Complex (Unki – Anglo Platinum), the Hartley Geological Complex (Hartley and Ngezi Platinum Mines – Zimplats) and the Musengezi Complex. The Hartley Geological complex is the largest of the PGM bearing complexes containing 85% of the known PGM resources in Zimbabwe.
The stratigraphy is broadly divided between a lower ultramafic and an overlying mafic sequence. The ultramafic sequence hosts the P1 pyroxenite, directly below the mafic–ultramafic contact, which in turn hosts the economic PGM–bearing Main Sulphide Zone (MSZ). The MSZ is generally 2 to 3 metres thick. Optimal mineralisation varies and, in contrast to the Bushveld Complex, is often difficult to follow visually. Peak values for the PGM and base metals are commonly offset, while the proportions between platinum and palladium also vary vertically.
Zimplats MSZ Metals Splits 3PGE+Au
| Orebody | Category | Tonnes (millions) | Grade (g/t) 3PGE+Au | Ni % | Cu % | Pt oz (millions) |
|---|---|---|---|---|---|---|
| Ngezi portals - advanced to reserve | ||||||
| MSZ | Measured | 69.1 | 3.47 | 0.09 | 0.09 | 3.8 |
| Indicated | 205.6 | 3.54 | 0.11 | 0.09 | 11.7 | |
| Total | 275 | 3.52 | 0.10 | 0.09 | 15.6 | |
| Ngezi portals - not advanced to reserve | ||||||
| MSZ | Measured | 21.7 | 3.43 | 0.11 | 0.12 | 1.1 |
| Indicated | 188.2 | 3.51 | 0.12 | 0.10 | 10.4 | |
| inferred | 112 | 3.44 | 0.13 | 0.09 | 6.4 | |
| Total | 322 | 3.48 | 0.12 | 0.10 | 17.9 | |
| Mining extensions north of portal 10 | ||||||
| MSZ | Indicated | 44.6 | 4.56 | 0.22 | 0.18 | 3.0 |
| Inferred | 673 | 3.59 | 0.15 | 0.13 | 36.6 | |
| Total | 718 | 3.65 | 0.15 | 0.13 | 39.7 | |
| Hartley (SML1) | ||||||
| MSZ | Measured | 24.1 | 4.53 | 0.14 | 0.12 | 1.7 |
| Indicated | 117.1 | 3.98 | 0.13 | 0.11 | 7.6 | |
| inferred | 28 | 3.87 | 0.13 | 0.10 | 1.8 | |
| Total | 169 | 4.04 | 0.13 | 0.11 | 11.1 | |
| Oxides - all areas | ||||||
| MSZ | Indicated | 17.0 | 3.47 | 0.10 | 0.07 | 1.0 |
| Inferred | 61 | 3.67 | 0.12 | 0.10 | 3.5 | |
| Total | 78 | 3.62 | 0.12 | 0.09 | 4.5 | |
| Overall Total | 1,563 | 3.63 | 0.13 | 0.11 | 88.7 | |
| Orebody | Category | Mill tonnes (millions) | Grade (g/t) 3PGE+Au | Ni % | Cu % | Pt oz (millions) |
|---|---|---|---|---|---|---|
| MSZ | Proved | 57.0 | 3.34 | 0.10 | 0.07 | 3.0 |
| Probable | 184.3 | 3.37 | 0.11 | 0.08 | 9.9 | |
| Total | 241.5 | 3.36 | 0.11 | 0.08 | 12.9 |
Note: Mineral Resources are quoted inclusive of Ore Reserves, see Implats’ Annual Report 2007 for full details.
Mining
Zimplats commenced production at the Ngezi opencast mine in December 2001. However, due to the increase in opencast contractor mining costs, Zimplats decided to reduce the volume of opencast tonnes mined replacing them with underground tonnage from the Portal 2 underground mine which employs the conventional bord and pillar mining method. Portal 2 which reached full production at the end of June 2006, represents the completion of the first phase of the conversion from opencast to underground mining. Opencast operations will cease in June 2008 when the mining contract with MCC, the current operator, expires.
Following the signing of the agreement with the Government of Zimbabwe in May 2006, Zimplats announced the approval of the Ngezi Expansion - Phase 1 project which is the start of the company's long term expansion plan. This project heralds the replacement of the remaining opencast operation with underground mining operations. The investment of US$340 million will see the simultaneous development of two new underground mines (Portal 1 and Portal 4) at Ngezi and the construction of a new 1.5 million tonne per annum concentrator. Platinum production is set to rise from the current 90,000 ounce level to 160,000 ounces of platinum in matte per annum by 2010.
Metallurgy
Around 6,000 tonnes of ore per day is transported by road trains to SMC where it is treated by two-stage milling followed by flotation. The float is dried in a flash drier. Currently the concentrator is achieving a recovery rate of 84.4%. The dry concentrate is then smelted in an arc furnace and converted to matte which is despatched to Impala Platinum’s refinery in terms of a life-of-mine agreement with Impala Refining Services (IRS).
Indigenisation
The Zimbabwean local ownership bill was passed by parliament in late September 2007 and seeks indigenisation of 51% of foreign owned firms. Zimplats supports the aims of localisation and has agreements in place that will be taken into account when looking at overall compliance with these requirements. The agreement with the Government of Zimbabwe in May 2006 secured Zimplats 19.5% empowerment credits as well as a cash credit of US$51 million or 9.75% empowerment credit if no cash is forthcoming. Further credits will be gained from infrastructural and social spend.
Sustainable development
Zimplats remains committed to social development initiatives and engages in, develops and builds community relationships. It takes responsibility for economic, social and environmental issues that impact its people, communities and environments. The first phase of the expansion to 160,000 ounces of platinum per annum includes the construction of 715 new staff houses near Ngezi, the upgrading of amenities in the area and the creation of 1,200 new jobs, plus an estimated further 3,000 contractor jobs during the three year construction phase.
| FY2007 | FY2006 | FY2005 | FY2004 | FY2003 | ||
|---|---|---|---|---|---|---|
| Production | ||||||
| Tonnes milled | (000 t) | 2,133 | 2,019 | 2,058 | 2,006 | 1,937 |
| Headgrade (3E+Au) | (g/t) | 3.48 | 3.37 | 3.22 | 3.23 | 3.19 |
| Platinum in matte | (000 oz) | 96.5 | 90.3 | 86.8 | 85.3 | 82.4 |
| PGM in matte | (000 oz) | 205.7 | 195.6 | 187.0 | 186.7 | 185.2 |
| Mining cost of sales | ||||||
| Mining | (Rm) | 495.7 | 451.0 | 400.3 | 297.7 | 318.1 |
| Concentrating and smelting | (Rm) | 153.5 | 92.8 | 104.3 | 114.6 | 106.6 |
| Total cost | ||||||
| per tonne milled | (R/t) | 318 | 282 | 259 | 216 | 222 |
| ($/t) | 44 | 44 | 43 | 31 | 24 | |
| per platinum ounce in matte | (R/oz) | 7,033 | 6,302 | 6,141 | 5,074 | 5,223 |
| ($/oz) | 978 | 986 | 992 | 735 | 574 | |
| Financial ratios | ||||||
| Gross margin | % | 54.7 | 41.8 | 20.1 | 35.7 | 26.6 |
| Capital expenditure | (Rm) | 448.7 | 252.5 | 137.7 | 76.3 | 27.3 |
| ($m) | 62.4 | 39.5 | 22.3 | 11.1 | 3.0 | |
| Safety | ||||||
| LTIFR (per million man hours worked) | 0.28 | 0.90 | 0.80 | 0.46 | 2.00 | |
| FIFR (per million man hours worked) | - | - | 0.13 | - | 0.40 | |
| Labour complement | ||||||
| (including contractors) | 3,400 | 1,800 | 1,700 | 1,500 | 1,500 |
