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Advancements in Premier’s Zulu Lithium Project

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Advancements in Premier’s Zulu Lithium Project

Premier African Minerals Limited has reported that their lithium project is up and running, producing saleable concentrate. The company is still making improvements to increase both the quality and quantity of output.

Patricia Rwafa

In a previous update in April, Premier announced they were focusing on their Zulu lithium processing unit (flotation circuit). This unit is now operational and producing commercial-grade lithium concentrate (spodumene concentrate). Premier is still fine-tuning the unit to improve the amount and quality of lithium concentrate it produces. They expect ongoing improvements in both areas.

According to George Roach, CEO, “Thanks to the support the Company receives from ENPROTEC, the supplier of the flotation plant components, and innovation and dedication from our team at Zulu, we are now able to run the flotation circuit continuously and produce saleable spodumene concentrate.

There is much to be encouraged by, notably, the use of an activator in the spodumene flotation plant that has seen recoveries in internal laboratory work approaching 90% and indications that the ore body in situ grade is higher than was estimated in our Resource model. The overall plant is currently running at a feed rate to spodumene flotation that is approximately 50% of the original flotation design capacity and will need a further conditioning tank and minor pump upgrades to operate at the full design capacity. This is over and above the recently completed flow changes. The required pumps are already at the site, and the additional civils for the conditioning tank should be completed in May 2024.

Target production for the coming week is expected to start at 50 tonnes of spodumene concentrate per day with increasing production. The target’s full projected capacity remains at 4,000 tonnes per month. Grade is consistently improving with continuous running, and the latest internal chemical analysis of spodumene concentrate produced by the flotation circuit indicates grades have now improved to between 4.5% and 6.3% Li2O,” he said.

The Zulu Plant

For the reasons previously reported, Premier replaced the original plant contractor in March 2024. While the flotation circuit is now running in a constant and stable state, it will take time to fully remedy the original design deficiencies in the overall plant and move from what in many instances are interim fixes to the final operating plant. Some of these issues are set out below:

Ore Sorters

Neither the XRT nor the Ultraviolet sorters are adequately performing the functions for which they were sold and delivered to the Company. It is only the diligent and very careful efforts of a team from the Zulu Geology Department that both carefully oversee mining and ROM pad inspections to avoid waste reporting to the plant and thus allow the plant to operate contaminant-free. This interim solution is working well and is adequate for now but does not represent a long-term solution. The equipment supplier has been called upon to deal with this. Premier will seek to enforce its rights and is investigating alternatives.

Milling and Sizing

The original mill and screen system were inadequate and unable to provide more adequately milled and screened material. This setback Zulu by a year. The new ball mill and sizing equipment have resulted in an interim stable operation but only after a complete redesign of the mill discharge and hydro sizer circuit to operate at a consistent optimized feed rate. Additional upgrades will be installed in this circuit shortly to bring this to industry standard.

Magnetic Separation and Tantalum Recovery

The plant was supplied with a magnetic separator and a circuit intended to remove both a paramagnetic and a magnetic fraction for bagging. The magnetic separator supplied is low intensity (LIMS) and cannot remove a paramagnetic fraction that would include tantalum. The magnetic separator circuit is further unable to efficiently remove iron generated from the milling process to an acceptable degree and will need to be upgraded shortly.

Flotation Circuit

The components of the flotation circuit were originally specified by the original plant contractor on the basis that they would be integrated, installed, and commissioned by them. That ENPROTEC has committed to rectifying design constraints and commissioning this part of the plant is a major factor in the successful operational status now achieved.

Ore Body and Plant Grades

With the development of the open pit, the Company has now been able to validate the actual pegmatite that is being mined. In-pit evaluation is undertaken through the sampling of the pegmatite from blast hole drilling and channel samples cut across the bench. This allows for better reconciliation to the 5m x 5m x 5m Assay Block Model grades. On the bench level currently being developed and mined, the Indicated Resource grade from the assay block model was 1.01% Li2O while the average grade of the ore hauled to the ROM pad is currently 1.13% Li2O, an approximate 10% increase.

At the same time, with material blended from selective mining in the EPO area, Li2O grades recorded in the ore feed to the flotation circuit are in the range of 1.1% Li2O to 1.8% Li2O, and the dry solids being fed to the spodumene float plant contain between 12% and 25% spodumene.

Spodumene Concentrate

The term SC6 is used as a price determination point, being the price paid for spodumene concentrate in which the Li2O grade is 6%. Approximately 74% of the concentrate would then be made up of spodumene. The spodumene concentrate in any grade more than 4% Li2O is saleable with an adjustment to the price paid relative to the actual amount of spodumene contained in that bag. It should be noted that prices are quoted for spodumene concentrates at lower grades and these prices are in the public domain.

It is worth noting that the market for lepidolite is improving, and Premier believes that it is likely that our Mica/lepidolite will sell shortly.

Financial Model

The Company will engage an independent consultancy to assess overall cost implications related to the present mining operation. Previously, the Company has indicated a mine gate production cost of $800 per ton. This may benefit from reduced mining costs linked to ore sourced from within the EPO.

Women in Gemstones Eye US$1 Billion Industry in Five Years

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Women in Gemstones Eye US$1 Billion Industry in Five Years

Through the beneficiation and value addition of gemstones, the Women in Gemstones Association in Zimbabwe (WIGAZ) is aiming to establish a US$1 billion gemstone industry within five years.

by Rudairo Mapuranga

WIGAZ, currently collaborating with ActionAid, the Zimbabwe Environmental Law Association (ZELA), and the Minerals Marketing Corporation of Zimbabwe (MMCZ), is optimistic that continuous investment in Women in Gemstones by these organizations will lead to the industry’s growth into a billion-dollar sector within five years.

Speaking to Mining Zimbabwe, WIGAZ Treasurer Ms Stelia Phiri said the organization is also collaborating with Defold Mining Company to formalize gemstone mining by women to ensure maximum benefits.

“We are working with ActionAid and ZELA. We have introduced value addition and beneficiation.

“We are also collaborating with Defold to ensure that illegal gemstone miners are regularized. The first step is to formalize our mines. We are also working with MMCZ to ensure that knowledge about gemstones is spread in Zimbabwe. Gemstones have not been contributing much to the national GDP, but we are working to ensure the industry becomes a billion-dollar sector,” she said.

Ms. Phiri mentioned that through her company, Sastelia Enterprises, she is involved in the value addition of gemstones by creating art paintings adorned with gemstones to provide a natural stone feel.

She also noted that her company is training youth in cutting, polishing, and value addition.

“We are also training youth to ensure they are empowered in cutting, polishing, and value addition.

“Every stone has value. After cutting our stones, we don’t dispose of the feelings. We use them for art,” Ms. Phiri said.

Chrome Miners Call for International Investors

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Chrome Miners Call for International Investors

Robson Butete, the Secretary-General for Ward Miners Association (WMA), has appealed to investors to consider investing in the exploration of the chrome in Zimbabwe.

by Rudairo Mapuranga

According to Butete, Zimbabwe boasts some of the highest grades of chrome ore globally, ranging from 36% to 70% chrome ore, making it an attractive investment opportunity.

“We are in areas where investors can utilize artisanal miners’ trenching, in between Zimasco and Zimalloys claims,” Butete explained. “One investor conducted Resistivity tests and trenching, yielding promising results. They are currently deliberating on proceeding with mining operations. Although only six of our claims have been assessed, we have a total of 13 sites comprising chrome and gold reserves.”

Recent exploration activities conducted by the WMA have yielded positive outcomes, with chrome ore deposits reaching up to 72%. Tagonerwanashe Ward Trust Chrome Exploration Trenching, conducted between April 23rd and 25th, 2024, in Lalapanzi, recorded significant success:

Total trenches excavated: 11
Total length of trenches: 440 meters
Successful trenches: 8 out of 11 (72%)
Average depth intercepted: 1.5 meters
Dip of seam: +/- 16°
Seam width: 15-40 cm
Total samples collected: 10

Awaiting results from South Africa, expected by the end of next week, the Association plans to initiate a mine plan, ensure regulatory compliance, conduct follow-up drilling, and execute agreements with surface rights holders based on the geological report.

By capitalizing on these advantages, international investors can contribute to the sustainable development of Zimbabwe’s chrome mining industry while securing profitable returns on their investments.

Investing in the chrome mining sector in Zimbabwe offers several advantages,

including:

High-grade Chrome Ore

Zimbabwe boasts some of the highest grades of chrome ore globally, providing investors with access to premium-quality resources.

Exploration Potential

Ongoing exploration activities indicate significant potential for the discovery of additional chrome reserves, offering long-term investment opportunities.

Strategic Location

Situated between established mining claims, investors can leverage existing infrastructure and expertise, reducing operational costs and risks.

Diverse Mineral Reserves

Beyond chrome, Zimbabwe also possesses substantial reserves of gold, diversifying investment portfolios and hedging against market fluctuations.

Favorable Regulatory Environment

The Zimbabwean government has implemented policies to attract foreign investment in the mining sector, providing investors with a supportive regulatory framework.

Contango Hits Milestones at Muchesu Coal Project

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Contango Hits Milestones at Muchesu Coal Project

Contango Holdings, a company listed on the London Stock Exchange, has raised £940,000 to develop their Muchesu coal project in Zimbabwe.

Contango owns 70% of the project and has begun coking and thermal coal production. The company is securing offtake agreements (deals to buy the coal) and discussing potential partnerships for the mine.

In a press release on May 2, 2024, Contage clarified the ownership structure of the Muchesu project. The company holds the majority stake (70%) with local partners owning the remaining 30%.

The Muchesu Coal Mine covers 19,236 hectares of the highly prospective Karoo Mid Zambezi coal basin, located in the established Hwange mining district in northwestern Zimbabwe.

Contango has commenced small-scale production of coking and industrial coal, generating interest from potential buyers. They have already produced 120 tonnes and have two interested parties collecting samples this week. Discussions are ongoing with multiple potential customers, with total demand potentially reaching over 50,000 tonnes of coal per month. This initial production and strong interest are positive signs for the project’s future.

Negotiations with potential buyers suggest a combined demand exceeding 50,000 tonnes of coal every month. Contango acknowledges that not all discussions will be successful, but they are confident of securing several contracts in the coming months (by June 2024) with these interested parties.

Contango has recently extracted another 250 tonnes of thermal coal. This batch is going to a potential buyer who will perform a “burn test” to assess its quality. If the test goes well, Contage is optimistic about securing a large, long-term contract to sell this type of coal to the same buyer.

Alongside the progress on mining operations, the company is still in talks with several groups interested in either partnering with them (joint venture) or buying the entire mine.

ZiG Currency Adopted as Official Unit

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ZiG Currency Adopted as Official Unit

The Minister of Finance and Investment Promotion, Prof. Mthuli Ncube, announced on Tuesday that the Zimbabwe Gold (ZiG) is now the official unit of exchange for transactions.

According to Prof. Ncube, plans are underway to implement regulations to ensure businesses adhere to the official exchange rate.

Since its launch in early April, the ZiG has maintained stability on the official market. However, it has encountered challenges on the parallel market, where traders charge a premium of 65% above the official rate to acquire dollars.

Some supermarkets have also been observed charging a premium above the market rate of ZiG 13.6 per U.S. dollar for customers using the new currency, while informal traders have shown reluctance to accept ZiG.

In a statement, Finance Minister Prof. Mthuli Ncube emphasized the government’s commitment to enforcing orderly pricing.

He announced plans to introduce regulations to ensure that only the official exchange rate is used for pricing goods and services.

“To ensure orderly pricing, the government will soon introduce the necessary regulations to ensure that no exchange rate other than the official rate will be used for the pricing of all goods and services,” Prof. Ncube said.

Efforts to support the ZiG’s stability have been ongoing since its launch, including crackdowns on illegal foreign currency traders initiated by authorities last month.

The introduction of the ZiG marks Zimbabwe’s fourth attempt at establishing a local currency within a decade. The move comes after the country abandoned the Zim dollar last month due to a 70% depreciation since the beginning of the year.

Prospect gains access to Zambia copper project data through the Orpheus Uranium deal

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Prospect gains access to Zambia copper project data through the Orpheus Uranium deal

Prospect Resources Limited (PSC: ASX, 5E8:FRA) has announced the completion of a deal with Orpheus Uranium Limited (ASX: ORP) following the satisfaction of agreed-upon conditions. This agreement grants Prospect access to valuable data to advance their Mumbezhi Copper Project in Zambia.

The public announcement of the agreement between Prospect Resources and Orpheus Uranium was made on April 9, 2024. Prospect paid Orpheus A$1.0 million in fully paid PSC shares as partial reimbursement of prior exploration expenditure, along with three options to acquire ordinary PSC shares for every four shares issued, at 15 cents per share, expiring three years after issue.

Upon the definition of a JORC-reportable Mineral resource exceeding 500,000 tonnes of contained copper metal, Prospect will also make a milestone payment of A$2.5 million to Orpheus.

On May 3, 2024, the Company issued 8.3 million ordinary shares in Prospect at an issue price of $0.12 per share (the issue price is equal to the 5-day VWAP on the date the condition precedent was satisfied). The Company also issued 6,250,000 unlisted options to acquire ordinary shares in Prospect at $0.15 per share, expiring on April 11, 2027.

According to Prospect’s Managing Director and CEO, Sam Hosack,

“The satisfaction of the Conditions Precedent with Orpheus Uranium results in the Prospect team owning all existing mining and geological data from Orpheus/Argonaut, a significant first step in Prospect’s understanding of the opportunity presented by the Mumbezhi Copper Project in Zambia.”

“We are now processing, cataloguing, analyzing, and benefiting from a far larger volume of digital data and physical drill core materials sourced over a decade of exploration by Orpheus/Argonaut, and we thank the Company for the seamless way in which the data transfer occurred.”

“The physical materials have been very well preserved and ordered in such a manner that will facilitate Prospect’s timely review of all the purchased data to deliver a maiden copper mineral resource estimate for Mumbezhi during Q3 2024.”

“Now the corporate team is fully focused on completing the transaction with GDC to close out the separate Conditions Precedent for our 85% interest in the Project license by the end of May.”

Reconstruction Order Issued for BNC Amid Price Plunge and Operational Challenges

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Reconstruction Order Issued for BNC Amid Price Plunge and Operational Challenges

The government has initiated a reconstruction order for Bindura Nickel Corporation (BNC)’s Trojan mine, Zimbabwe’s leading nickel producer, which is grappling with equipment breakdowns and plummeting global prices.

In a notice published on Thursday, Justice Minister Ziyambi Ziyambi appointed Mutsa Remba as the administrator, placing the company under reconstruction. This entails transferring control to the administrator, who is tasked with reviving the company.

“The board of the company under reconstruction shall be divested of the control and management of the company’s affairs, and any person managing or controlling the company’s affairs in any capacity other than as simply a member of the board referred to above shall continue in office subject to the control and direction of, and be answerable to, the administrator.” Remba, formerly an assistant administrator of Hwange Colliery, has experience in similar restructuring efforts from 2022.

The government can invoke the State Indebted Insolvent Companies Act to salvage distressed state-affiliated entities. BNC, predominantly owned by the state-owned Kuvimba Mining House (KMH), falls under this purview.

BNC’s plight reflects the broader crisis among Zimbabwean mining firms, which are struggling with capital shortages amid declining metal prices and escalating expenses. BNC anticipates an 8% increase in losses for the six months ending in March compared to the same period last year.

Since last year, Trojan Mine ceased nickel production due to a critical equipment failure – the Sub-Vertical Rock Winder (SVR) bull gear, essential for ore extraction. Although a replacement winder has been installed, operational challenges persist, delaying mining resumption, as stated in a Thursday stock exchange notice by BNC.

The company attributes its woes to nickel prices hovering at economically unsustainable levels, unable to offset soaring operational costs, particularly energy expenses, which surged by 40% for miners last year. BNC’s deep mining operations incur high production costs compounded by low ore grades.

Moreover, BNC underscores the imperative of securing capital for equipment upgrades, especially underground mining machinery and the processing plant, to revitalize operations.

Nickel prices surged to record highs of $100,000 per tonne in 2022, fueled by supply concerns following the Ukraine conflict. However, oversupply dynamics have since slashed prices to below $19,000 per tonne, marking a 25% decline from a year ago.

Thelma Nyabanga: Leading the Way as Acting Metallurgical Engineer at Eureka

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Thelma Nyabanga: Leading the Way as Acting Metallurgical Engineer at Eureka

Thelma Nyabanga is a 26-year-old ambitious young woman who graduated from the University of Zimbabwe with her Bachelor in Metallurgical Engineering in 2020 She completed her Masters in Mineral Processing and extractive Metallurgy in 2023. She joined Eureka Mine in 2021 as a graduate learner, was promoted to process metallurgist end of 2023 and she is now acting Metallurgical Engineer.

Despite her demanding career, Thelma is also a dedicated wife and proud mother of two.

Mining Zimbabwe had a one-on-one with Nyabanga and here is our interaction.

In your current role as Acting Metallurgical Engineer, you mention supervising and monitoring various plant operations. Can you share a specific instance where your skills in process optimization and problem-solving significantly improved plant efficiency at Eureka Gold Mine?

Well, I worked on a project where I developed a model for tracking our major consumables, which came as a major cost-saving initiative as we now get to control consumptions before they go out of hand, monitor daily and weekly consumptions against the budgeted targets, and apply corrective measures where necessary.

As a Process Metallurgist, you were involved in developing and maintaining quality assurance systems. How did you contribute to ensuring quality standards in mineral processing and any continuous improvement initiatives you implemented?

As part of process optimization, every day I conducted a thorough analysis of the processing operations, identifying areas of improvement, identifying bottlenecks, and proposing optimizations to enhance overall efficiency and product quality. I initiated continuous monitoring systems and utilized data analytics to identify trends, anomalies, and optimization opportunities in real time, which allows for timely intervention to address issues.

In your role, you monitored and adjusted the production process using statistical process control. Could you elaborate on how statistical analysis of processing parameters and metallurgical testing results has helped in achieving set targets at Eureka?

By analyzing historical data on processing parameters such as grind, and reagents dosage, among others, we can establish control limits and early detection of deviations from set targets. This allows for prompt corrective action, therefore minimizing the impact on product quality and process efficiency.

In your previous roles, you mentioned overseeing plant operations using advanced control systems like SCADA. Can you share how these systems enhanced operational control and contributed to achieving the target results?

SCADA plays a crucial role in overseeing plant operations in mineral processing through real-time monitoring, centralized control, historical data analysis, alarm management, to name a few. And by leveraging these capabilities, set targets are achieved more reliably, efficiently, and cost-effectively, ultimately driving overall plant performance and profitability.

With a Master’s degree in Mineral Processing and Extractive Metallurgy, how has your academic background influenced your approach to solving real-world challenges at the large-scale mineral processing plant?

It has helped a lot as I now have a deep understanding of the fundamental principles that drive our processes which allows me to analyze complex problems from first principles. Through coursework and research projects, I honed advanced analytical skills that enable me to systematically analyze data, identify patterns, and draw meaningful conclusions. Generally, I gained expertise in process optimization techniques like experimental design and statistical analysis.

As a leader, you have men working under you. As a 26-year-old woman, do you face any challenges or resistance working with men who at times will be ages closer to your parents?

Part of my management training was to learn interpersonal skills and communication proficiency and these skills have worked well in my favor. Most of the team are men and we have developed a good working relationship and we have mutual respect. The trick is to communicate effectively what you expect from them beforehand and clearly set targets all the while assuring them that we are a team.

With strong analytical skills, how do you use data analysis to drive decision-making in metallurgical processes?

It’s a requirement for the job of a metallurgist to have an inquisitive mind to question why is there and what could be done to better it. By systematically analyzing data, I get to identify opportunities for optimization and implement changes. Data analysis forms the basis of continuous improvement initiatives.

Guruve is deep in the rural areas, and as a young woman from Harare, how has moving to such a remote area affected you?

I have adjusted positively to the place and its peacefulness. My family has been very supportive from the get-go and has also adjusted quite positively to the move. I have no regrets so far.

Thoko is inspired to be like you. What’s your advice for her to excel like you?

Go for it, don’t doubt yourself, and anything is possible if you put your head to it what’s needed is the drive, focus, and determination.

Besides Mining business, what’s Thelma into?

Thelma is into Aviation and also loves cooking and baking.

When I’m not at work, I focus on my kids to cover up for the lost time.

DRC Mining Week focuses on sustainability win-win for mining houses and local communities

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DRC Mining Week focuses on sustainability win-win for mining houses and local communities

Annual flagship event to host 8000+ mining professionals in Lubumbashi

DRC Mining Week returns to Lubumbashi in the heart of the Copperbelt in June with a bold, comprehensive and dedicated programme focusing on “Prioritising sustainable mining operations and local transformation in the DRC.” The event has already confirmed the presence and support of an impressive line-up of returning sponsors and mining houses.

For close to two decades, DRC Mining Week has served as the pivotal gathering for fostering the growth and development of the mining industry in the DRC.

“We have another thought-provoking and valuable programme planned from 12–14 June and the DRC Mining Week team is ready and raring to go!” says Samukelo Madlabane, Event Director – Mining at the Vuka Group, organisers of this long-running flagship conference and expo.

“Our focus of prioritising sustainable mining operations and local transformation in the DRC is line with the current global movement to meet the UN’s sustainability goals by 2030, and the mining community knows that it has an important part to play and contribution to make in this regard.”

Madlabane continues: “Our world is undergoing a transformative shift, and the mining sector is at the forefront of this evolution. With sustainability and local development as our guiding principles, the 2024 DRC Mining Week serves as a platform for industry leaders, experts and stakeholders to come together, share insights and forge innovative solutions.”

The event provides a broad spectrum of thought-provoking content and opportunities to meet existing and prospective partners and clients:

  • Energy Investment Forum;
  • Countless meeting and networking occasions for 1300+ elite decision-makers, including mining executives and government officials;
  • An expansive expo with 275+ companies showcasing the latest and trusted technologies and services for the industry, including 8 country pavilions;
  • A glittering awards evening celebrating mining pioneers;
  • The invitation-only CEO Roundtable;
  • Exclusive site visit to Kamoa mine;
  • The innovative Think It Business Roundtable; and
  • The annual Women In Mining high tea, which is always a hot ticket and an event highlight.

In total, more than 8,000 local and international mining professionals are expected at the event, promising valuable exposure and potential contacts for participating partners.

Discussions, debates and deals

The conference features sessions focusing on sustainable and responsible mining, energy infrastructure, value chain investments, strategic development planning, experts sharing case studies and best practices, regulations and tax management, improving regional trade, financial risks and opportunities as well as diversification in the sector.

Already the event has an impressive line-up of confirmed sponsors and partners, well-known as well as up-and-coming names in the sector, many of whom have been longstanding supporters of the event, returning year after year with senior delegations prepared to discuss, debate and do deals.

To name a few, Standard Bank are returning as the lead sponsors, while Ecobank, EquityBCDC, Glencore, Kamoto Copper Company S.A., Mumi and USAid are diamond plus sponsors. More mining houses that also confirmed their presence include Barrick, CMOC, ERG, Gecamines, Kibali Gold Mine, MMG and Tantalex Lithium Resources.

Compliments from high-level partners and guests about the 2023 event:

– I would like to congratulate the whole team for a very successful edition of the DRC Mining Week in Lubumbashi. We are very grateful for being invited to attend this important event. We look forward continuing our fruitful collaboration with you. – Mr. Huang Xia, United Nations Special Envoy, Great Lakes Region.

– DRC Mining Week was really great with an amazing variety of participants. I participated in several editions but this one was really special, we felt the desire of the delegates to get involved differently in the mining sector of the DRC and for Glencore, it is a must to take part in this event. – Marie-Chantal Kaninda, President, Glencore, DRC.

– Standard Bank is convinced that the Congolese economy will show a positive growth rate and the bank is willing to support this growth. – Marie-Gabrielle Opese, Chief Executive and Head of Corporate and Investment Banking (CIB), Standard Bank, DRC.

The brand new and packed brochure for the 2024 edition of DRC Mining Week is available now on the event website. Click here.

About DRC Mining Week

DRC Mining Week is organised by The VUKA Group (formerly Clarion Events Africa), a leading Cape Town-based and multi-award-winning organiser of exhibitions, conferences and digital events across the continent in the infrastructure, energy, mining, mobility, e-commerce and CX sectors. Other well-known events by The Vuka Group include the DRC-Africa Battery Metals Forum, Nigeria Mining Week, Enlit Africa, Africa’s Green Economy Summit, Smarter Mobility Africa, ECOM Africa and CEM Africa.

DRC Mining Week dates and venue: – Live event: 12–14 June 2024 – Expo and conference: 12–14 June 2024 – Location: Grand Karavia Hotel, Lubumbashi, DRC.

Zimplats delivers a year-on-year growth

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Zimplats delivers a year-on-year growth

Zimplats Limited Holdings maintained stable production levels while achieving significant year-on-year growth. This quarter saw a 9% increase in mining output compared to the same period last year, driven by successful pillar reclamation efforts and continued development of the Mupani Mine. Metal production also showed a positive trend, with a 12% year-on-year improvement.

Patricia Rwafa

In a report released on 30 April 2024, Zimplats spent US$789 million during the quarter ending in March this year on major capital projects, including the development of the Mupani and Bimha mines upgrades as the platinum group metals miner expands operations.

Mining volumes remained unchanged from the prior quarter but increased by 9% year-on-year, benefiting from the pillar reclamation operations at Rukodzi Mine and the continued ramp-up of production from the Mupani Mine, which is under development.

Pillar reclamation activities also improved the 6E head grade, which was 2% higher year-on-year. The 1% reduction in grade from the prior quarter was due to the increased contribution of lower-grade Mupani Mine development ore and dilution from mining across geological structures.

Milled volumes increased by 7% and 3% compared to the comparative and prior quarters, respectively. A scheduled reline of the mills at the Selous Metallurgical Complex (SMC) was deferred to the fourth quarter of FY2024, with volumes benefiting from improved milling rates and running time, in line with higher ore supply.

Concentrate recoveries were stable compared to the prior quarter and increased by 5% from the comparative quarter, resulting in a 2% quarter-on-quarter and 14% year-on-year increase in the volume of 6E in concentrate produced.

6E metal in the final product improved by 12% year-on-year and was 1% higher than the prior quarter.

Cost containment initiatives implemented in the prior quarter progressed in the period under review, resulting in a 2% reduction in total operating cash costs from the prior quarter. Operating cash costs increased by 7% year-on-year, primarily due to the 9% and 7% increase in mining and milling volumes respectively, benefiting from cost mitigation efforts that helped contain the impact of persistent input inflation.

Transfers from stocks to operating costs amounted to US$2.8 million during the period, in line with the movement in inventory across the value chain.

Cash costs of metal produced increased by 5% and 1% from the comparative and prior quarter, respectively. The operating cash unit cost of US$821 per 6E ounce was marginally below that of the prior quarter and declined by 6% year-on-year, benefiting from volume gains that offset inflationary pressures experienced on electricity.

In light of the softer metal pricing environment, management has implemented various cash preservation measures, including labor rationalization and capital project rescheduling within cash constraints. In April 2024, 67 employees, representing 1.6% of the total permanent workforce, were retrenched.

The Bimha and Mupani mine development and upgrade projects will replace production from Rukodzi Mine (depleted in FY2022), and Ngwarati and Mupfuti mines (depleting in FY2025 and FY2028, respectively).

Cumulatively, US$395 million has been spent on these projects as of 31 March 2024, against a total project budget of US$468 million.

A total of US$340 million has been spent to date on the smelter expansion and SO2 abatement plant against a total project budget of US$521 million.

US$27 million has been spent on the implementation of the 35MW solar plant project to date, against a budget of US$37 million.

A total of US$27 million has been spent to date on the execution of the Base Metal Refinery refurbishment project, against a total budget of US$190 million.

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