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Harare - Zimplats, the Zimbabwe-based unit of Impala Platinum [JSE:IMP], said it is working on modifying the old smelter at its Selous, formerly BHP mine, so that it can meet the government’s requirement of having all platinum processed in Zimbabwe.
To modify the old smelter, Zimplats will have to fork out US$190m for the first stage and a further $500m for the second stage.
CEO Alex Mhembere told analysts on Wednesday that the smelter modification was a cheaper and faster way of meeting government's requirement.
Mhembere said that the plant modification process, which he said will take about 24 months to complete, will be funded by internal resources.
However, he said if internal resources are not adequate shareholders will have to chip, in while borrowing is also another option.
He added that the Selous smelter will be able to process only 33.33% or 90 000 ounces per year from its total of 270 000 ounces.
He said Zimplats is working with other miners such as Bindura Nickel Corporation and RioZim who are also working on modifying their smelters facilities to be able to process platinum group metal (PGM) minerals.
Currently Zimplats processes its PGM minerals to the converter matte stage while further processing is done in South Africa.
The Zimbabwean government has, however, ordered that all platinum be processed in Zimbabwe, and has imposed a penalty on all raw platinum exports.
The Zimbabwean government is also considering a complete ban on the export of unbeneficiated platinum next year when the ultimatum given to miners expires this year, if miners are slow to set up a precious metals refinery.
