JSE-listed platinum miner Impala Platinum (Implats) in March announced a five-year, R50-billion capital investment programme to extend life-of-mine (LoM) development and grow production at several of its operations, while safeguarding jobs.

Implats CEO Nico Muller says the programme is aimed at increasing beneficiation capacity, strengthening energy security and ensuring that the group meets its decarbonisation targets.

The programme will benefit the Southern Africa region’s production, reduce the group’s carbon footprint and position the region more competitively as a global mine-to-market platinum group metals (PGMs) producer.

Of this capital investment, R9-billion is earmarked to expand Implats’ South African and Zimbabwean smelting and refining facilities, while another R8-billion will be invested across joint venture (JV) Southern African mining operations.

Muller notes that, as South Africa transitions to green energy, a further R4.3-billion has been allocated to ensuring that every operation achieves energy supply security by implementing renewable-energy technologies over the next five years.

Mine Replacement, Beneficiation Projects

Having obtained a 185 MW power generation licence at Zimbabwe Platinum Mines (Zimplats), Implats implemented the first phase of a solar photovoltaic project of 35 MW, which is expected to reach completion in the second quarter (Q2) of financial year (FY) 2024.

“This is the first large-scale project towards meeting the group’s short-term decarbonisation target of a 30% reduction against the 2019 baseline,” says Muller.

A total of $521-million was also granted for the expansion of the existing smelter capacity and the installation of sulphur dioxide abatement at Zimplats’ Selous Metallurgical Complex (SMC), in the Mashonaland West province.

This expansion will accommodate an additional 600 000 oz/y of platinum, palladium, rhodium, ruthenium, osmium and gold, or 6E. First matte production from the new 36 MW furnace is scheduled for Q3 of FY 2024, with commissioning of the acid plant expected in Q2 of FY 2025.

“This expansion will result in an industry-leading environmental footprint for Zimbabwean smelting facilities,” adds Muller.

Further, the $468-million mine replacement projects will facilitate the upgrade of the Bimha mine and continue the development of the new Mupani mine.

Once the projects are completed, the Bimha and Mupani mines are expected to produce 3.1-million tonnes and 3.6-million tonnes respectively of 6E PGMs a year. They will replace production from the Rukodzi, Ngwarati and Mupfuti mines, as all three will be depleted by 2028.

The mines and the SMC form part of Zimplats’ Ngezi operation, located about 150 km

southwest of Harare.

Meanwhile, the $90-million North Hill project will extend the Mimosa mine’s LoM by ten years and sustain 227 000 t a month of 6E ore into the existing processing plant. Mimosa, located about 150 km east of Bulawayo, is a JV with Sibanye-Stillwater.

South African Opertions

“The nature and quantum of ore feeds contributing to the group’s PGMs production continue to evolve, and ounce production is set to increase, in line with Implats’ growth and beneficiation strategy,” says Muller.

Consequently, R3.9-billion over five years has been allocated to improving its South African processing facilities.

About R500-million will be used to debottleneck sections of the Base Metals Refinery in Springs, Gauteng, and expand treatment capacity by about 10% in the medium term to provide room for future growth.

The R5.1-billion Marula Phase 2 project serves to replace production of the current Marula mine. Phase 2 includes a concentrator plant expansion, allowing for incremental production growth.

The project will deliver a 17-year LoM extension, with an increase of about 20% in milling capacity, to 2.4-million tonnes a year. Phase 2 is expected to start production in FY 2023, Muller enthuses.

Implats has also accelerated project execution at Two Rivers, following numerous supply-related delays during the height of the pandemic.

Alongside JV partner African Rainbow Minerals, Implats has secured R5.7-billion over the next five years to construct the new Merensky mine at the Two Rivers operation. Merensky will increase production by 180 000 6E oz, with first concentrate production scheduled for FY 2024.

Muller concludes that Implats’ considerable organic and acquisitive growth ambitions were made possible by a “relentless focus” to achieve an optimal capital structure and ensure that windfall profits from the current PGMs cycle were appropriately harnessed, thereby securing enduring benefit through Implats’ enhanced flexibility and asset integrity.