Platinum producer Impala Platinum (Implats) reports that the Phase 1 expansion of the Zimplats mine, a $340-million project involving the development of two underground mines, Portal 1 and Portal 4, a new concentrator and other infrastructure, has been completed, with the Phase 2 expansion expected to be approved by the Implats board in early 2010.

Phase 1 is currently ramping up to 
180 000 oz/y, while Phase 2 is expected to increase production by between 
80 000 oz/y to 100 000 oz/y. Phase 2 will involve the development of a new underground mine and a new concentrator and is expected to take two years to complete from time of approval.

Portal 1 reached full production in December 2008, producing one-million tons a year, while Portal 4 is scheduled to be ramped up to produce two-million tons a year, in 2011.

Implats CEO David Brown says that the company is expecting 170 000 oz/y of platinum to be mined at Zimplats for the 2010 production year, moving up to 
180 000 oz/y in 2011. He adds that the size and quality of the platinum ore at Zimplats are excellent.

Zimplats consists of three shallow mechanised underground mines, a con-centrator and smelter plants at the Selous 
metallurgical complex, as well as a concen-trator plant at Ngezi. The mine employs 
5 459 people, including contractors.

The output of platinum in matte in 2009 increased marginally year-on-year as the operation geared itself for the ramp-up in production in the coming year. Openpit mining, which had already been scaled back because of high costs, was finally halted in November 2008, in response to the slump in metal prices, while the underground production from Portal 2 was ramped up to maintain production levels. The openpit orebody continues to provide flexibility should the market environment demand fast access to extra ore in the future.

In the wake of the significant decline in metal prices and the dollarisation of the Zimbabwe economy, both operating costs and capital expenditure were reviewed with the goal of reducing debt and conserving cash. Unit costs were negatively impacted on by the increase in overhead costs as the operation prepared for the ramp-up to full production in the coming year. The company reports that, once this is achieved, Zimplats will become one of the lowest-cost primary producers of platinum in the world.

Brown tells Mining Weekly that the management team at Zimplats has proved that they can deliver on the goals set by the company. The challenge around mobility and loss of skills has, to a large extent, been tackled and is less of a problem for the operation than it was a year ago. Zimplats is focusing on training, particularly of new teams as the ramp-up takes effect. Food is also more freely available locally, while a proactive approach to the health and wellbeing of employees protected them from a cholera crisis in that country.

However, Brown mentions that the political instability of the government of national unity has social consequences that also affect the operation of the mine. Further, he explains that aspects of certain agreements that have not been honoured by the government create new challenges for Implats.

“Future growth at Zimplats depends on economic and political stability in Zimbabwe. Various expansion options are currently being investigated and future expansion could involve the development of underground mines, another concen-trator, a dam and a new smelter,” Brown asserts.

Zimplats, with its large reserves and easy underground access, has the potential to become a one-million-ounce-a-year platinum producer, given the right market conditions.

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