Share

Amplats' Zim unit may build new mine

Zimbabwe - The Zimbabwe unit of Anglo Platinum [JSE:AMS] is considering building a new mine which could double production, its chief financial officer said on Friday.

But whether the project actually goes ahead will hinge on the results of a review Amplats' majority owner Anglo American is conducting into its platinum operations in the wake of violent strikes in South Africa and sluggish global demand.

The review is widely expected to lead to shaft closures and job cuts that could further anger its workforce.

Another worry in Zimbabwe, which after South Africa has the world's second largest known platinum deposits, is Harare's championing of a law requiring foreign-owned firms to surrender majority stakes in their Zimbabwean operations to local blacks.

"We are exploring various options to expand production, including building a new mine that could cost up to $400m," Colin Chibafa, the chief financial officer of Amplats' Zimbabwe unit, told reporters.

Chibafa said production would "possibly double" after construction of the new mine. Output for 2012 is seen at 65 000 ounces.

Chibafa said supplies of electricity, which have hit mining operations in Zimbabwe, had improved after platinum miners helped the government power company pay $80m owed to Mozambique's supplier Hydro Cahora Bassa of Mozambique.

In early November Amplats said it agreed to transfer a majority shareholding in Unki mine to locals following pressure from President Robert Mugabe's government.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders