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 87% as a result of the buyout of minority holders and the receipt of 14.9 million newly issued ordinary Zimplats shares on the sale of its 30% stake in Zimbabwe Platinum Mines (Pvt) Limited (formerly Makwiro Platinum (Pvt) Limited) to Zimplats.
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 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 550 kilometres and has a maximum width of 11 kilometres. 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)
MINING
Zimplats commenced production at the Ngezi opencast mine in December 2001. This open pit operation was finally closed in November 2008 due to the increase in opencast contractor mining costs and the slump in metal prices. The open-pit orebody continues to provide optionality should the market environment demand fast access to additional ore in the future.
The Phase 1 expansion, a $340 million project involving the development of two underground mines, Portal 1 and Portal 4, a new concentrator and other infrastructure will produce 180,000 ounces of platinum on an annualised basis in FY2011. The $450 million Phase 2 expansion involving the development of a new 2 million tonne underground mine, Portal 3, and an additional concentrator module at Ngezi, a dam and other infrastructure including 1,125 employee houses has been initiated. At nameplate capacity expected in FY2014 refined platinum production will increase to 270,000 ounces. Underground stoping at Zimplats currently consists of mechanised bord and pillar layouts.
METALLURGY
The new concentrator at Ngezi was commissioned in July 2009 and reached full production capacity of 2 million tonnes per annum in October 2009. Around 6,000 tonnes of ore per day is also transported by road trains to the SMC. Concentrate from both plants 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
Zimbabwe’s indigenisation regulations were gazetted in early 2010 and require foreign companies to indigenise 51% of their shares or interest within five years. Zimplats has submitted its proposals to government in this regard but no clarity has yet been received.
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.
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Zimplats - key statistics |
| |
|
|
FY2010 |
FY2009 |
FY2008 |
FY2007 |
FY2006 |
| |
Production |
|
|
|
|
|
|
| |
Tonnes milled |
(000 t) |
4,095 |
2,167 |
2,201 |
2,133 |
2,019 |
| |
Headgrade (5E+Au) |
(g/t) |
3.56 |
3.52 |
3.53 |
3.48 |
3.37 |
|
Platinum in matte |
(000 oz) |
173.9 |
96.0 |
94.3 |
96.5 |
90.3 |
| |
PGM in matte |
(000 oz) |
368.9 |
201.7 |
200.2 |
205.7 |
195.6 |
| |
Mining cost of sales |
(Rm) |
1,481 |
1,108 |
1,010 |
768 |
604 |
|
Mining operations |
(Rm) |
806 |
795 |
669 |
496 |
451 |
| |
Processing operations |
(Rm) |
373 |
224 |
152 |
154 |
93 |
|
Other |
(Rm) |
302 |
89 |
189 |
119 |
60 |
 |
|
|
|
|
|
|
|
| |
Total cost |
(Rm) |
1,324 |
1,127 |
869 |
680 |
569 |
|
Per tonne milled |
(R/t) |
323 |
520 |
395 |
319 |
282 |
| |
|
($/t) |
43 |
57 |
54 |
44 |
44 |
|
Per platinum ounce in matte |
(R/oz) |
7,614 |
11,740 |
9,215 |
7,047 |
6,302 |
| |
|
($/oz) |
1,007 |
1,293 |
1,269 |
980 |
986 |
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|
|
|
|
|
|
|
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Financial ratios |
|
|
|
|
|
|
|
Gross margin |
(%) |
51.5 |
(0.8) |
52.6 |
54.7 |
41.8 |
| |
|
|
|
|
|
|
|
| |
Capital expenditure |
(Rm) |
698 |
1,358 |
1,319 |
449 |
253 |
| |
|
($m) |
92 |
150 |
182 |
62 |
40 |
| |
|
|
|
|
|
|
|
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Safety |
|
|
|
|
|
|
|
LTIFR (per million man hours worked) |
|
0.69 |
0.45 |
0.69 |
0.28 |
0.90 |
| |
FIFR (per million man hours worked) |
|
- |
- |
0.19 |
- |
- |
| |
|
|
|
|
|
|
|
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Labour complement including contractors |
|
3,680 |
5,459 |
5,582 |
3,400 |
1,800 |
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