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Zimplats spends US$26m on equipment

01/02/2011 00:00:00
by Gilbert Nyambabvu
 
Expansion ... Zimplats orders equipment
 
RELATED STORIES
Zim seen increasing platinum output

PLATINUM producer Zimplats – which is implementing a major expansion programme – will take delivery of mining equipment worth US$26 million, Swedish supplier, Atlas Copco has announced.

Describing the deal as a “key order from Zimbabwe’s mining industry” Atlas spokesperson, Björn Rosengren said at least one hundred jobs would be created locally to service the equipment.

“The trial suite and subsequent order total 44 pieces of low seam underground mining equipment, such as drilling rigs, mine trucks and loaders, and will be used in Ngezi Platinum Mine.

“The order was placed in the fourth quarter 2010 and deliveries of the equipment will start in March, 2011,” Atlas said in a statement.

Zimplats says it expects annualised output to top 180,000 ounces of platinum in 2011 following the completion of a US$340 million expansion project at Ngezi which involved the development of two underground mines, a new concentrator and other infrastructure.

Meanwhile, South Africa-based Impala Platinum – which has an 87 percent interest in Zimplats – has since approved a US$450 million Phase 2 expansion involving the development of a new 2 million tonne underground mine, an additional concentrator module at Ngezi, a dam and other infrastructure including more than 1000 employee houses.

Impala Platinum said they have since submitted proposals to the government regarding compliance with the country’s empowerment laws but are yet to receive clarity from the authorities over the issue.

Zimbabwe now requires all foreign companies to ensure that at least 51 percent of their shareholding is controlled by locals over a period of five years.

Zimplats is the country’s largest platinum miner, followed by Mimosa mine in Zvishavane.

Anglo American Corporation expects production to begin at its Unki project in Shurugwi and government officials recently indicated that two new players – one of them a Chinese company -- were set to enter the sector.



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