Anglo Platinum forges ahead with new Zimbabwe platinum mine

ANGLO Platinum, the world's leading global platinum producer, is forging ahead with its planned Zimbabwe operations despite the country's mounting political risk and continuing uncertainty in the mining sector there.

Last month, Mineweb's sister website, Moneyweb, reported that Anglo and Eskom were planning to sink an undisclosed amount of money towards the revival of under-utilized Zimbabwe power stations. This move, the report noted, would strategically position the giant platinum miner and cushion it against the incessant power outages that the country is currently experiencing.

On the company's new Zimbabwean platinum mine, "Anglo Platinum has embarked on an exciting undertaking near Shurugwi in the lush Midlands,"the company said in a job advertisement in the South African press last week, apparently referring to its plans for the Unki platinum mine. The project, which has been on the cards for the past few years would become Zimbabwe's second largest platinum mine and would also be a significant producer of palladium.

Zimbabwe's mining sector is currently shrouded in uncertainty with several mining companies having put their investments and expansionary programmes on hold. Many had hoped for a change of leadership and this almost became so when the majority of Zimbabweans voted against President Robert Mugabe's government, according to poll results posted outside polling stations and now seemingly confirmed after a series of recounts by the country's Electoral Commission.

Anglo Platinum says production at Unki will begin this year, "with 120,000 t/m (of ore) expected by the fourth quarter of 2010".

Apart from Anglo's platinum mining operations, Zimbabwe is also host to Implats, the world's second-biggest platinum producer and also has key mining operations in Zimbabwe, which has the world's second-biggest platinum reserves after South Africa.

Implats Chief Executive David Brown recently revealed his firm was spending about $360 million to expand its Mimosa and Zimplats operations in Zimbabwe. The investment, said Brown, would increase output of the precious metal from its Zimbabwe mines by 100,000 ounces to 260,000 ounces by 2010.

Anglo Platinum, which has been negatively affected by power outages in its home country, has asked to be allowed to export electricity to South Africa as part of its proposal.

Mineweb