Leading platinum mining companies in Zimbabwe have pledged support for the country’s drive to establish local refining capacity, signalling alignment with government efforts to increase domestic beneficiation of the precious metal.
The Zimbabwean Platinum Producers Association, representing major producers operating in the country, said local refining was economically viable and confirmed the industry’s commitment to the project.
The statement comes after the government of President Robert Mugabe warned mining firms that they risked facing a ban on platinum exports if refinery construction was not completed by year-end.
Zimbabwe holds the world’s second-largest platinum reserves after neighbouring South Africa and has long sought to retain a greater share of mining revenue by processing minerals domestically rather than exporting raw materials.
According to the producers’ association, the refinery project would require substantial supporting infrastructure, including electricity supplies of up to 150 megawatts to power processing units.
Zimbabwe currently produces around 430,000 ounces of platinum annually, according to government figures cited in a January 3 document obtained by Bloomberg News.
Industry estimates indicate that as much as US$5.3 billion in investment would be needed to expand production beyond 500,000 ounces per year while simultaneously building refinery facilities capable of processing platinum-group metals and associated industrial metals extracted from ore.
At present, the country’s platinum production is dominated by Anglo American Platinum, Impala Platinum and Aquarius Platinum.
Meanwhile, Eurasian Natural Resources Corp.-linked Todal is also developing a new mining shaft, according to the association.
Zimbabwe has increasingly pushed for value-addition policies in the mining sector as authorities seek to maximise earnings from the country’s vast mineral resources and stimulate industrial growth.
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