Mimosa Eyes US$100 Million Investiment In New Shaft

Mimosa Mining Company plans to invest US$100 million in developing a new shaft to extend its mine’s lifespan by 22 years.

The Zvishavane-based platinum producer, one of Zimbabwe’s three major players alongside Zimplats and Unki, currently has about 10 years of mining left.

General Manager Steve Ndiyamba told reporters during a tour of the Zvishavane operation last week that the company has completed exploration at its North and South Hill claims as part of the planned shaft development programme. He said:

We need to invest about US$100 million into North Hill to get another 12 years.

If we explore and investigate the other ore bodies and there is value, we may get another 10 years. So we are looking at about 30 years.

We have drilled North Hill and we know what is there. We know what is in South Hill — that is what (will take us to) 22 years. But beyond that we still have to do a lot more work.

But before we do that we need to spend money on North Hill to be able to take our lifespan from 10 years to 22 years.

The Mimosa boss said the company fully supports the government’s push for local platinum refining. Said Ndiyamba:

As you know, we have been encouraged to beneficiate locally as far as we can. Around 2016 and 2017 we carried out a study to look at setting up a smelter here. 

We actually produced a bankable feasibility study report which clearly show that yes, we can set up a smelter here for about US$80 million to US$100 million.

However, the challenge that we have as Mimosa is we only have 4% of the Great Dyke (the mineral belt that holds most of Zimbabwe’s platinum). 

We have the smallest resource and we are also the oldest mine. What is left in the ground is only 10 years.

If you take a life of 22 years and invest US$100 million in a smelter, it’s not enough for you to recover that investment. So, from a business point of view, you then don’t recover that capital investment.

However, the position we have taken is that where there is in-country processing facilities, we are prepared to join and combine with others so that we process internally.

More: NewsDay

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