By Tatenda Chitagu

ZVISHAVANE-Depressed metal prices have stalled plans by Mimosa to extend the lifespan of its mines.

Addressing journalists at a tour of the mine last week, Mimosa general manager Steve Ndiyamba said they needed to set up shafts at one of their ore bodies called Northill, but have been forced to put the plans on hold in the wake of a slump in metal prices on the world market.

“We have two ore bodies, Southill and Northill. Our operations are focused on the Southill complex or ore body, but we need to set up a shaft at Northill to extend life of mine by another twelve years. NorthHill, which is yet to be mined, will come as a replacement when South Hill deposits are depleted.

“Our current challenge is that of depressed metal prices which has an impact on operations and ability to conduct planned projects. In light of the depressed Platinum Group of Metals (PGM) prices and their impact on operations we have taken cost containment measures to safeguard viability. As a result, we have made a decision not to embark on the North Hill project for now,” Ndiyamba said.

Mimosa GM Steve Ndiyamba (source Mimosa Mining)

He said Mimosa will go ahead with the project once prices improve.

“Experts tell us the depression will be in the short to medium term. Therefore when we analysed we realised if we implement it now, it will be unviable given the market prices. We have put it on hold now. Once prices improve, we will be able to see how we implement it.

“But we are used to go through this. It has always been the cycle over the years. During these times, we do what it takes to optimise our operations to remain in business to survive this period and ensure that we sustain current operations. That is where our focus is at the moment

“So for now, our focus is on optimizing our current operations at South Hill to ensure that we navigate through this phase of low metal prices,” he said.

Mimosa, one of the oldest PGM mines in Zimbabwe, is currently mining and processing 2.8 million tonnes of ore to produce 120,000 ounces of platinum or 240,000 ounces of 4Es (Platinum, Palladium, Rhodium, Gold) annually.

PGMs contains a total of ten metals which are platinum, gold, palladium, rhodium, ruthenium, iridium, nickel, copper, cobalt, silver.

*Banner Image: An aerial view of Mimosa Mine plants (source Mimosa Mining)