Zimbabwe to expand underground platinum mine
Source: Xinhua News Agency - CEIS
Publication date: 2003-06-09
Arrival time: 2003-06-13
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Zimbabwe to expand underground platinum mine
HARARE, June 9 (Xinhua) -- Zimbabwe Platinum Mines (ZPM) will next year spend 140 million US dollars on the development of an underground mine at its Ngezi complex.
Company's chief executive officer Roy Pitchford was quoted by the Herald on Monday as saying that the expansion of the multi- billion dollar mine is expected to last for one year while actual mining would begin in 2005.
"The new development will see us cutting down on our operational costs. Underground mining will enable us to reduce costs since we will have direct access to the ore reserves," said Pitchford.
When fully-operational, the mine would produce 100,000 ounces of ore per annum compared to just above 50,000 at present.
The expansion of the mine would make it easy for the company to develop eight other claims within the mining complex.
Pitchford said prospects for the development of platinum in the country were good since mining in Zimbabwe was cheaper than in South Africa.
He said the firming of platinum prices on the international market, which were forecast to continue hovering around 580 US dollars and 720 US dollars per ounce and a deficit of 500,000 ounces of platinum on the international market, was an incentive for increased production the country.
He, however, called on the government to put in place more incentives to enhance mining in the country.
"The incentives must be certain, long-term and not subject to change," he said.
Pitchford said it was essential to ensure socio-economic stability and the implementation of sound mining laws that were not subject to constant change.
"We have the best mining laws in the region and our counterparts are actually implementing similar laws in their countries," he said.
The announcement by Pitchford comes barely two months after Anglo American Platinum Corporation Limited and Anglo Corporation Zimbabwe announced that they were proceeding with the development of the initial phase of the long awaited the 90-million-US dollar Unki Platinum project in Shurugwi.
Zimbabwe is expected to produce 600,000 ounces of platinum in the next five years, making the mineral the second largest foreign currency earner after tobacco.
Zimbabwe has the second largest platinum deposits in the world after South Africa. The country was expected to earn 174 million US dollars from the sale of platinum this year.
Annual production of platinum group metals is expected to rise to about 250,000 ounces this year, up from 30,000 ounces in 2001.
Publication date: 2003-06-09 |
