Business / Companies
Zimplats may delay major expansion project
23 Aug 2012 at 04:49hrs | Views
ZIMPLATS may have to delay a major expansion project because of cash constraints, the Business Day reported.
Zimplats, which is the largest platinum miner in Zimbabwe, is busy with the $470 million second phase of its mining operation to grow production to 270,000oz of platinum a year from this year's output of 187,100oz.
"Completion date for the project is due for financial year 2015, but it could be delayed due to cash constraints and weaker base metal commodity prices," Zimplats CEO Alex Mhembere said yesterday.
Zimplats has committed $332 million to the project so far, of which it has spent $223 million and has $109 million in orders.
Zimplats is busy complying with government legislation that the business be 51% owned by black Zimbabweans.
It struck an agreement with the government on the structure it would adopt, including a 10% ownership by a community trust, 10% by employees and 315 by a broad base body.
Zimplats, which is the largest platinum miner in Zimbabwe, is busy with the $470 million second phase of its mining operation to grow production to 270,000oz of platinum a year from this year's output of 187,100oz.
"Completion date for the project is due for financial year 2015, but it could be delayed due to cash constraints and weaker base metal commodity prices," Zimplats CEO Alex Mhembere said yesterday.
Zimplats has committed $332 million to the project so far, of which it has spent $223 million and has $109 million in orders.
Zimplats is busy complying with government legislation that the business be 51% owned by black Zimbabweans.
It struck an agreement with the government on the structure it would adopt, including a 10% ownership by a community trust, 10% by employees and 315 by a broad base body.
Source - BusinessDay
