Mine collapse costs Zimplats $23m

By John Kachembere

HARARE – Zimbabwe Platinum Mines Limited (Zimplats) says the collapse of its Bimha Mine in August last year cost the company nearly $23 million.

Alex Mhembere, Zimplats chief executive said the mine collapse resulted in the damage and inaccessibility of certain underground infrastructure and equipment with a net carrying amount of $22,9 million — which has been written-off during the six months to December 2014.

“An insurance claim is in the process of being finalised for associated plant and equipment, and any compensation received will offset the impact of the write-off,” he said.

Bimha is located 150km southeast of the capital Harare and is the biggest of the four mines run by Zimplats.

At the time of the collapse, mining experts had indicated that the platinum miner was likely to lose as much as $100 million after Zimplats had said the shutdown would hamper production of 70 000 ounces of platinum.

The company, 87 percent owned by the world’s second largest platinum miner Implats, produced 240 000 ounces of platinum in the year to June 2014.

In 2013, Bimha produced 41 percent of Zimplats’ total 4,96 million tonnes of ore, with the rest coming from the company’s three other mines. Daily News