Zimplats invests R28 billion capital for new mine and solar plant
Impala Platinum’s Zimplats in Zimbabwe, has announced a new R28 billion capital shore-up to develop a new mine, expand existing production and processing capacity at existing ones and to cater for power outages through a 185MW solar power plant.
Zimplats’ board of directors approved “an overall investment strategy with a budget of $ 1.8 billion to be implemented over 10 years from 2021, with $ 1.2 billion already approved for implementation,” the company said in a statement.
Bulk of the new capital expenditure for Zimplats will be used to expand production through growth projects such as “New Mine Development and Processing”. In addition, Zimplats will also build a “facility to reduce sulphur dioxide emissions from the current and expanded smelting capacity”.
A program to keep production at current levels is being carried out by replacing and upgrading mines, while upgrading the mothballed base metal refinery to further recover converter stone.
In addition, a new 185 MW “power supply” solar system will cost the company up to R 201 million.
The Impala Platinum-owned Zimplats are likely to benefit from the planned ramp-up through lower production costs. The new investment budget is “expected to be financed from own resources”.