Zimplats announced that its board of directors has sanctioned the company’s plans to invest $1.8bn over a 10-year period from 2021 to boost its production capacity.
The Zimbabwe-focused mining company said that $1.2bn of the planned investment has already been approved for implementation. It is currently engaged in the production of platinum group and associated metals from the Great Dyke in the African country.
Zimplats will invest $515m for sustaining its current production levels by carrying out mine replacements and upgrades.
It will allocate $969m for expanding production levels by taking up growth projects.
As part of the investment, the miner plans to develop a new mine and increase processing capacity. This is expected to ramp up its nameplate capacity from 6.7 million tonnes per annum (mtpa) to 8.8mtpa.
The in-country processing capacity will be increased to 3,80,000 tonnes of concentrate per year, said Zimplats.
Under the same investment, the miner will build an abatement facility to mitigate sulphuric dioxide emissions resulting from the existing and expanded smelting capacity.
Zimplats will also invest $100m towards the refurbishment of a mothballed base metal refinery with an aim to further beneficiate converter matte.
The other notable investment of the miner is an amount of $201m allocated for a 185MW solar power plant to augment its power supplies.
The solar plant is also expected to improve the ESG performance metrics to maintain the licence of Zimplats to operate.
Zimplats is a subsidiary of South Africa-based Impala Platinum (Implats), which holds a stake of 87%. The company is listed on the Australian Stock Exchange (ASX).
Through a majority-owned subsidiary called Zimbabwe Platinum Mines, the company operates five underground mines, which include Ngwarati, Rukodzi, Mupfuti, Bimha, and Mupani.