Fin24

Amplats' Zim unit may build new mine

2012-11-16 19:43

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.

Comments
  • john.dough.5836711 - 2012-11-16 21:47

    They must know something we don't..... maybe Bob is about to kick the bucket.

  • thunder.clap.587 - 2012-11-16 21:50

    Zim is coming back on the map n S.A. Is being scrapped off the map,hahaha,coughs,hahaha,swallow spit,hahaha,rolls on the floor, hahaha, gulp for air. LMAO.

  • kkmonakali - 2012-11-17 08:36

    Imperialists take what they can get, it doesnt matter if its a war zone, infact they create some many of the wars in these African countries to loot their natural resources.Zim must stick to their guns and make sure that Zimbabweans benefit from the presents of these multinationals. INDIGENASATION IS GREAT way to do that. Long live Robert Gabriel Mugabe!!

      eddy.deepfield - 2012-11-17 12:47

      You mean His Highness, Lord of Lords, Killer of Thousands of Matabele, murderer of thousands of opposition, murderer of nuns, woman and children, Richest man of Africa now 200 Billion Gadaffy is gone, destroyer of the Jewel and bread basket of Africa, example to the youth, the magnificent one and only Robert Gabriel Mugabe.

  • gary.desousa.7 - 2012-11-17 16:01

    Its buisness ,do the sums ,see if it works Anglo but remember you will be known as the once proud SA company that does buisness with a mad murdering dictator in that country, some of us will never forget that.

      isaac.tapfumaneyi.5 - 2012-11-18 13:13

      do you have the evidence that he is a murderous dictator?if so why not take it to the icc.why has the icc not charge him?the un human rights commissioner spent one week in zim and failed to find any rights abuses.so stop the ignorance

  • wmutahi - 2012-11-18 08:35

    indegenisation seems a better option than a militant politically charged workforce.

  • isaac.tapfumaneyi.5 - 2012-11-18 13:16

    sa miners already looking elswer wow.shows how violent south africans are the biggest threat to business.go zim go

      Mutsvene - 2012-11-19 17:03

      2013 is the year Zim comes right again with our work ethic,educated labour force and self employed masses who look after themselves rather than crying for gvt handouts like our brothers down South.Its all about competitive advantage and investors dont give a hoot about the genocide lies.

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