Fin24

SA platinum mines eye Zim

2012-11-19 10:19

Johannesburg - Platinum mining companies are expected to ramp up operations in Zimbabwe after production dropped to an 11-year low in South Africa, Business Day reported on Monday.

Anglo American Platinum [JSE:AMS] (Amplats) said it was planning a new mine in Zimbabwe, after it lost at least 170 000 ounces of platinum during an eight-week strike.

Amplat's subsidiary Unki Mines' chief financial officer Colin Chibafa said the new mine could double Zimbabwe's platinum output.

Impala Platinum [JSE:IMP] (Implats) recorded a surge in first-quarter platinum production from its Mimosa mine, which was a joint venture with Aquarius Platinum [JSE:AQP].

The mine said on Friday that the mine had recorded an increase in both tons milled and grade, resulting in an improvement in platinum production.

However, its Zimplats operation saw production fall by 11% because of a scheduled smelter shutdown in August and September.

Zimbabwe and South Africa hold 75% of the world's platinum reserves.

Foreign investor sentiment in South Africa took a knock after the country's mining industry was plagued by wildcat strikes.

On August 16, 34 striking workers at the Lonmin [JSE:LON] platinum mine in Marikana, were shot dead during a confrontation with police.

Comments
  • brasteve.myaluze - 2012-11-19 10:27

    Mines eyeung Zim? Should i worry? Inflation in Zim is 3.38% while in SA its 5.4%. Should i worry? mzansi, an economic powerhouse in africa will grow at about 2.5%, while sub-saharan africa will grow at a little over 5%. So much for being a powerhouse, but should i worry?

      gazaspells - 2012-11-19 17:27

      countries like zim and other southern african countries are still playing catch up to south africa. they are growing from a very low base, so its not suprising that they have higher growth rates than south africa. we tend to forget the bigger picture, what have been the growth rates of the world biggest economies like america (recession), europe (recession) e.t.c . zimbabwe is a case in point, from 2000-2009 there was negative growth whilst south africa and other countries have been having consistent positive growth

  • teddy.beer.319 - 2012-11-19 10:34

    We are now like an old lady basking in the glory of yesteryear. Still respected by noone wants to come here anymore. Zim is like a beautiful woman with a bad temper. Its worth a try despite the apparent danger. XD

  • tresor.mpika.9 - 2012-11-19 10:43

    if they think in Zim they going to have all then they are in for a suprize. the miners need to be fair and pay their workers well. they are no short cuts because even in Zim they will expect you to do the same

      thunder.clap.587 - 2012-11-19 11:29

      Zim made it clear that 50 percent is for local blacks n e investors r aware of that.

      michael.a.devilliers - 2012-11-19 13:47

      Really? Like they run their diamond mines?

  • peter.jefferies.90 - 2012-11-19 10:50

    Well the striking miners are getting their wish! Soon they won't have to work at all as there will be no jobs.

  • warren.carne.9 - 2012-11-19 10:53

    Good for them, people there WANT to work,this sort of investment will become more

  • Philip Nel - 2012-11-19 11:56

    After all the crap zim people have gone through and all the suffering . I rate this is a good thing , give people who want work jobs instead of those who want to get payed more than doctors .

  • clive.kihn - 2012-11-19 15:38

    Sad, isn't it, that Zim, with all its problems and with 50% state ownership requirements, might be a better bet than us. Wake up ANC president and govt, and Cosatu/NUM, etc. More job losses loom.

  • maverick.generators - 2012-11-19 20:28

    Im quite familiar with the mining industry in Zim and SA. At this point Zimbabwe is becoming a much more favourable destination. Granted 51% must be black zimbabwean owned under the indigenization act, but labour is cheap and hard working, strike and unrest is non existent. There are huge tax incentives on investment, the economy is US Dollar based so input costs are more manageable when the resources mined are sold internationally. Between BEE, over taxation, labour unions and idiotic lazy labour force that is ever demanding and becoming ever less productive, SA is quickly shooting itself in the foot. The politicsl future in Zim can only look up as the worst is behind, in SA the worst is yet to come.

      ziso.maziso - 2012-11-20 08:37

      Way to go Maverick, excellent analogy!

  • eddie.serane - 2012-11-28 13:40

    Miners eyeing Zim means more jobs ,boosting the economy in Zim. S.A b aware

  • james.matongo - 2012-12-17 14:23

    Its a good sign to the mining sector in Zim and let those who want work,work God bless Africa

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