Implats Warns of Platinum Project Risks Amid EV Shift & Price Slump
Impala Platinum (Implats), a significant player in Zimbabwe’s platinum industry through its ownership of Zimplats and Mimosa mines, has expressed concerns about the future of new platinum projects due to a slump in prices and the rising shift toward electric vehicles that don’t require platinum-group metals (PGMs) in their engines.
By Rudairo Mapuranga
Implats’ CEO, Nico Muller, recently stated that the company sees little chance of new platinum mines being developed, particularly in South Africa, given the current economic climate.
“It’s highly improbable that you’re going to see material investment in new PGMs (platinum group metals) production in South Africa,” Muller said.
Despite these concerns, Implats’ operations in Zimbabwe are still witnessing substantial developments.
Both Zimplats and Mimosa have had to reduce employment as part of broader cost-saving measures. However, this hasn’t stopped them from moving forward with significant investments.
Zimplats is currently constructing a new smelter, will commission a 35MW solar plant this quarter, and has announced plans to establish a base metal refinery (BMR), which could be a game-changer for the local industry. If these projects are commissioned, Mimosa is expected to perform toll processing at Zimplats, indicating a collaborative effort to maximize the value chain within Zimbabwe.
Additionally, Mimosa has recently completed a 165-hectare tailings storage facility, a critical infrastructure investment that underscores the mine’s commitment to sustainable operations and long-term extraction plans.
Zimplats, on the other hand, is reportedly building a tailings storage facility three times larger, reflecting even greater ambition and the scale of investment that these mines are planning for future extraction.
These developments signal that, despite global market challenges, Zimbabwe’s platinum mines are positioning themselves for significant growth and increased production.
While Implats is scaling back investments in some areas and placing certain projects on hold, Zimbabwe’s platinum sector is seeing robust activity from other investors.
Platinum miners are bound by antitrust rules that prohibit them from voluntarily cutting output to stimulate prices. However, Karo Resources and Bravura Holdings are both advancing their PGM mining projects in Zimbabwe, showing confidence in the country’s mineral potential despite the challenges highlighted by Implats.
Karo Resources is developing a large-scale PGM mine, while Bravura is establishing its own mining operations, reflecting strong investor faith in Zimbabwe’s future as a leading platinum producer.