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Mining industry requires US$2bn | Business Times

LIVINGSTONE MARUFU

 

Zimbabwe’s mining companies require US$2bn to recapitalise their operations  over the course of the next  12 months  in order to  boost output  and reach maximum capacity.

In its latest mining survey report, Chamber of Mines of Zimbabwe (CoMZ) said: “Analysis of capital requirements by mining companies show that the industry requires around US$2bn in the next 12 months to ramp up and sustain their operations,”  reads part of the report.

The majority of executives said that retained earnings help them meet some of their capital needs.

“Those that indicated that access to capital will worsen cited anticipated subdued profitability in 2024 therefore reducing retained earnings available for reinvestment. When further interrogated about the prospects for cost of capital in 2024, the majority (90%) of the mining executives are expecting the cost of capital (specifically offshore funding) to remain high in 2024 as was the case in 2023.

“None of the executives are expecting the cost of capital to improve in 2024,” the report said.

The platinum sector have invested close to US$1bn.

“In the past two years, Zimplats have spent around more than US$570m on capital projects related to stay-in-business, replacement mines and expansion projects.

“Of the total, US$300m has been spent in the current year and the projects include the replacement of depleting mines, establishment of a new concentrator plant, refurbishment of the mothballed  Base Metal Refinery, construction of a 35MWAC solar plant at SMC, construction of a 38MW furnace, as well as an SO2 abatement plan.

Zimplats is also planning to inject US$190m  to refurbish its mothballed Base Metal Refinery and the projects are expected to be finalised by between 2024 and 2028.

Mimosa Mining Company are spending more than US$200m on their North Hill Project and developing tailings storage facility for life-of-mine extension.

The players in the gold sector have spent over US$50m.

While Freda Rebeca has spent approximately US$29m on exploration, mine development, and tailings storage projects to maintain operations over the last 24 months, Blanket Mine is investing US$12.7m on infrastructure for tailings storage, which they hope to finish by 2025.

Dallaglio is spending around US$25m  on their Pixton Peerless transition to underground mining targeting completion timelines of mid-2024 and once fully commissioned, the project is expected to add another 7% into their production.

While Shamva Gold Mine are spending more than US$7m in exploration activities around their mine to ensure the availability of mineable resources to achieve 200,000 tons of ore per month with Pan African Mining are injecting around US$13m  on exploration and shaft deepening to sustain their operations.

Also, the  Bulawayo Mining Company are spending more than US$7m  on exploration, shaft sinking and deepening as well as tonnage ramp up to sustain its  operations.

In the next 12 months, Golden Reef Mining are planning to spend more than US$700,000 on their heap leaching and CIP/CIL to increase production capacity by more than 10% and Falcon gold are planning to spend more than US$400,000 on exploration and development at their mine to sustain and ramp up production.

 

 


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