In its full year results released Thursday, Implats announced that this was its first year of full production in Zimbabwe, following the commissioning of the Phase 1 expansion in 2010.
“Tonnes milled increased by three per cent to 4.2 million, with the Bimha Mine achieving full throughput in May 2011,” read the company’s statement, signed by Implats Chairman, Khotso Mokhele and David Brown, the Chief Executive Officer.
Unit costs rose by 16 per cent to US$1 171 per platinum ounce in matte, due to a combination of internal inflation, the strong rand and higher maintenance costs at the Ngezi concentrator.
The company’s Phase 2 expansion commenced in August 2010 and is expected to cost in the region of US$460 million. Mupfuti Mine, in Mashonaland East, is scheduled to commence production in 2013 while the new concentrator unit will reach full nameplate capacity in 2014.
“Refined platinum production is expected to increase by 90 000 ounces to 270 000 ounces per annum.”
The Group added that it was still engaged discussions with the government of Zimbabwe on the implementation of the indigenization act, after its initial plans were recently turned down by government and remained hopeful for an acceptable outcome.
The company’s detailed strategic review, undertaken during the year, evaluated mine planning parameters and the project status, reaching a decision to maintain production at the current rate of 70 000 ounces of platinum per annum for the next two years, to enable the completion of ancillary infrastructure on on-reef development.
Marula is right-sizing its cost base to the current ounce profile, a process that was successfully completed in July. A further strategic review will be undertaken in 2013.
Mimosa completed its second year of steady-state production, with tonnes milled, headgrade and concentrator recoveries each having increased by a percentage to 2.3 million, 3.91g/t 6E and 77 per cent respectively.
“This resulted in record production of 104 900 ounces of platinum in concentrate. Unit costs were adversely impacted by higher than anticipated labour costs, increased material usage due to bad ground conditions, consumable costs as well as the influence of the stronger rand.”
Unit costs per platinum ounce in concentrate rose by 15 per cent to US$1 377.
Post published in: Business