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A section of Mimosa Mining company’s platinum processing plant

Midlands Correspondent
THE country’s second biggest platinum miner, Mimosa Mining Company, is targeting finalising feasibility studies to determine its expansion this year as it aims to double output.

The feasibility studies survey began in 2013 and should it sail through, it will beef up the platinum mine’s production levels.

Mimosa executive chairman Winston Chitando told Business Chronicle the outcome of the studies would determine whether the mine will go ahead with expansion, which has been dealt a major blow by the tumbling in prices of the white metal.

“We’re still doing feasibility studies to explore the possibility of expanding and we continue to undertake those studies.

“We’re looking at concluding the feasibility exercise in this financial year and see whether we go ahead with the plans if it’s viable,” he said.

Chitando expressed confidence the mine would bounce back to profitability after it posted a net loss after tax of $13 million for the year ended June 30, 2014.

The company is yet to release the financial statement for the second half of last year amid indications annual production at the mine has exceeded design capacity.

Volumes milled were up by four percent while there was a slight decline in the grade mined and mill recovered.

Platinum Group Metal production rose by three percent over the year to 221,358 ounces, largely as a result of on-going process stabilisation, optimisation and cost reduction initiatives currently being pursued.

The firm has adopted cost cutting measures such as labour rationalisation aimed at cushioning the Zvishavane based mine from the plummeting platinum prices.

More than 100 workers were voluntarily retrenched in May last year, which represents eight percent of the total workforce.

Other initiatives being pursued included mobile equipment, fleet rationalisation and productivity improvement “to ensure that costs are maintained within budget.”

The tightening of monetary policy by the United States government and the firming of the greenback against major currencies has been cited by analysts as one of the reasons for the plummeting of platinum and gold prices.