Zimplats invests US$36m in base metal refinery revival

Platinum producer Zimplats has invested US$36 million toward the revival of its Base Metal Refinery (BMR) at the Selous Metallurgical Complex, about 80 kilometres southwest of Harare, as part of efforts to enhance mineral beneficiation and value addition.

A Base Metal Refinery is a critical link in the processing of Platinum Group Metals (PGMs), bridging extractive smelting and final precious metal purification. Zimplats' BMR is being reengineered to process 5 200 tonnes of nickel and associated base metals, separating nickel, copper and chrome from platinum group metals.

The facility was suspended around 1999 due to severe cash constraints triggered by falling platinum prices. Outdated technology had also made operations expensive, necessitating refurbishment. The upgrade forms part of a broader US$1,8 billion expansion programme aimed at increasing processing capacity and reducing reliance on overseas refining.

In conjunction with the BMR project, Zimplats has tripled its smelting capacity to 380 000 tonnes of concentrate per year. Once fully operational - targeted for the beginning of the 2027 financial year - the company plans to progress toward establishing a precious metal refinery.

As of December 31, 2025, US$36 million had been spent against a total project budget of US$190 million, according to chief executive officer Alex Mhembere in the company's half-year financial results. The BMR project had previously been deferred outside the current five-year business plan.

Zimbabwe's PGM matte sales generated US$1,5 billion in 2025, representing a 71 percent increase from the previous year. The surge was driven by a 26 percent rise in the PGM basket price, improved operational efficiencies and a strategic shift toward local beneficiation by producing matte rather than concentrates.

Platinum remains Zimbabwe's second-largest export earner after gold, which generated over US$4 billion following record production of 46,7 tonnes. According to the Minerals Marketing Corporation of Zimbabwe, mineral exports excluding gold and silver reached US$3,4 billion in 2025, up 14 percent from 2024. Mining accounts for over 70 percent of Zimbabwe's export earnings and contributes between 12 and 16 percent of gross domestic product.

Currently, Zimplats exports platinum matte to South Africa for further refining, limiting Zimbabwe's potential revenue streams, foreign currency inflows and employment opportunities. The BMR revival aligns with Government policy aimed at promoting beneficiation of PGMs, diamonds, gold and chrome to maximise value from finite mineral resources. Beneficiation is seen as central to Zimbabwe's ambition of attaining upper-middle-income status by 2030.

Operationally, Zimplats reported improved performance in the half-year to December 2025. Mined volumes rose 7,69 percent to 4,2 million tonnes, while tonnes milled increased five percent to four million tonnes. Although mill head grade for the six elements (platinum, palladium, rhodium, gold, ruthenium and iridium) declined marginally, 6E metal production climbed 13 percent to 316 765 ounces.

Revenue for the period surged 83 percent to US$641,8 million, driven by a 66 percent increase in average metal prices and higher sales volumes. Profit before tax jumped to US$203,4 million from US$8,9 million previously, while profit after tax reached US$143,7 million.

Despite the strong results, the company did not declare an interim dividend, opting to preserve capital for strategic projects.

Successful completion of the BMR upgrade could mark a significant turning point for Zimbabwe's platinum sector, strengthening domestic value addition and enhancing the country's position in the global PGM value chain.