Zimplats wants to unlock more value for business
ZIMBABWE’S largest platinum miner, Zimplats, has committed an additional US$1,5 million on exploration activities meant to unlock more value for the business.
The exploration exercise covers mineral resource evaluation comprising an estimated 13 464 metres of surface diamond drilling.
“A total of US$1,3 million was spent on exploration projects, with a further US$1,5 million committed as at 31 December 2021,” said the company in a latest update.
“Exploration activities included mineral resource evaluation, comprising approximately 13 464 metres of surface diamond drilling over existing projects on the two mining leases.”
During the quarter to December 31, 2021, it said exploration activities increased geological and geotechnical confidence in production schedules.
The platinum giant also posted 1 682 tonnes of ore, which was seven percent below the prior quarter ended September 30, 2021.
“Mined tonnage decreased seven percent both quarter-on-quarter and year-on-year. This was mainly due to production disruptions at Mupfuti Mine during a change-over of trackless mining equipment service provider,” it said.
“The process has since been completed. 6E head grade decreased two percent to 3,39 grammes per tonne from the prior quarter, largely due to the impact of ore mix as increased volumes of lower grade ore were milled from the Mupani Mine development stockpile,” said Zimplats.
Milled tonnes, however, increased by three percent quarter-on-quarter and year-on-year due to higher running time at the concentrator plants.
“The previous quarter’s milled volumes were affected by the planned concentrator mill reline shutdown at the Selous Metallurgical Complex.
“6E metal in final product decreased by two percent to 140 768 ounces from the prior quarter, impacted by the lower head grade notwithstanding the higher tonnes milled,” said the company.
On a year-on-year basis, metal in final product decreased by four percent driven by lower head grade and a decrease in concentrator recoveries. Recoveries were adversely affected by the two percent decrease in head grade.
A total of US$0,6 million was transferred from operating costs to closing stocks during the quarter largely due to concentrate stockpiled during the routine furnace taphole inspection shutdown.
A combination of lower production volumes and higher operating costs resulted in an eight percent quarter-on-quarter and a 13 percent year-on-year increase in operating cash costs to US$735 per 6E ounce.
In November 2021, Zimplats’ board approved a US$521 million capital expenditure project to construct a new 38MW furnace and establish an acid plant for the abatement of sulphur dioxide generated by the smelter operations.