JOHANNESBURG (miningweekly.com) – Zimplats, which is a subsidiary of South African mining firm Impala Platinum, has approved the technical aspects of its proposed Ngezi Phase II expansion project, at a projected cost of $445-million, but warned that the start date would be dependent on a number of aspects.

The proposed expansion would involve the development of a two-million tons a year underground mine, a two-million tons a year concentrator module, a 35 000-million litre dam, a nine-km overland ore conveyor and employee housing.

Zimplats noted in a statement that the commencement of the project would be dependent on compliance issues regarding the Indigenisation and Economic Empowerment Act and accompanying regulations.

In terms of the new legislation, foreign-owned companies with asset values of $500 000 or above were expected to sell 51% of their shares to Zimbabwean locals within five years.

Zimplats said that it had submitted its proposed plans to the relevant authorities and was still awaiting a response.

Further considerations would entail a “mutually acceptable” arrangement with the Zimbabwean government regarding a $34-million advance that the company was owed by the Reserve Bank of Zimbabwe and the ongoing discussions regarding the additional profits tax, which the company believed were punitive.

The platinum miner said that discussions on these matter were ongoing, but that it was uncertain when a conclusion would be reached.

Meanwhile, Zimplats reported that its four-element in concentrate platinum-group metals production had dropped slightly to 93 845 oz in the quarter ended March 31, 2010, compared with the 94 670 oz produced in the quarter ended December 31, 2010.

However, higher sales volumes and improved metal prices had led to a 9% increase in overall revenues and a 14% increase in operating profit for the March quarter.

Revenues rose to $116,6-million, while operating profits increased to $57-million.

- reporting by Chanel Pringle