Leading platinum group miner Zimplats Holdings Limited cumulatively spent US$339 million during the quarter ending December 31, 2024, as it advanced major projects such as the Mupani Mine, smelter expansion, SO2 abatement plant, and solar plant initiatives, Mining Zimbabwe can report.
By Ryan Chigoche
The company continued to scale its operations despite rising operational costs and specific production challenges, including a decline in production volumes, which impacted performance during the quarter.
During this quarter, the PGM miner allocated a total of US$339 million towards its ongoing projects.
This represents a decrease from the US$413 million spent in the previous quarter, primarily because no capital expenditure was directed towards the Bimha Mine in the December period.
Despite this reduction, significant investments in key projects are positioning the company for future growth.
The Mupani Mine, which will replace the depleted Rukodzi and Ngwarati mines, is progressing as planned, with full production of 3.6 million tonnes per annum scheduled for the first half of the fiscal year 2029. By December 31, 2024, US$339 million had been spent on the mine, which is part of a total project budget of US$386 million.
The smelter expansion and SO2 abatement plant projects are also moving forward, with US$443 million spent to date, against a project budget of US$544 million.
The first phase, which includes the expanded smelter and off-gas handling facilities, was technically completed by the end of December, with converter commissioning ongoing.
The solar plant, which was commissioned in August 2024, has already reached its design generation capacity. This project saw a cumulative spend of US$37 million in the quarter.
Additionally, the company reported that the Base Metal Refinery refurbishment project is progressing well, with US$32 million spent so far, against a total budget of US$190 million.
However, the progress of these major projects came amid rising operational costs. Operating cash costs increased by 3% year-on-year and quarter-on-quarter, largely due to higher power costs following the commissioning of the expanded smelter. Additionally, timing differences related to the replacement of major engineering components further contributed to the increase.
Mined volumes were hampered by poor trackless mobile machinery (TMM) availability and intermittent power supply interruptions. Total volumes were down by 7% year-on-year and 8% lower than the previous quarter.
On a positive note, production from the Ngwarati Mine, which ceased primary operations in June 2024, was successfully replaced by a combination of higher output from pillar reclamation at the Rukodzi Mine and production volumes from Mupani Mine.
During the quarter, US$18.5 million was transferred to closing stocks, largely driven by the accumulation of concentrate and furnace stocks ahead of commissioning. This was coupled with efforts to optimize the increased smelting and converting capacity at the metallurgical complex.
As a result of these adjustments, the cash cost of metal produced decreased by 10% year-on-year and 4% quarter-on-quarter. However, the operating cash cost per 6E ounce rose to US$935, marking a 13% increase year-on-year and 11% quarter-on-quarter, primarily driven by the impact of lower production volumes during the quarter.
Exploration activities were limited this quarter, as metal prices remained depressed. As a result, the company’s focus shifted towards interpreting previously drilled cores and updating the Group’s geological and mineral resource models.
Despite these operational challenges, Zimplats remains on track with its key projects.
The Mupani Mine, smelter expansion, and solar plant are progressing as planned, ensuring the company is positioned for future growth, even as it navigates the impact of rising operational costs and production constraints during the quarter.