Zimpapers Logo

Platinum

Lovemore Zigara, Midlands Correspondent
SHURUGWI-based platinum producer, Unki Mine, has asked its suppliers to cut prices by between five to 15 percent as it tries to rationalise its operations in light of the depressed base metal prices on the international market.

Platinum is averaging $1,000 per ounce (Oz) from a peak of $1,800 per Oz five years ago.

The development has negatively affected turnover at the platinum mine, which is wholly owned by Anglo-American, the world’s largest platinum producer.

Amplats chief financial officer, Colin Chibafa confirmed the new measures to Business Chronicle.

“Like most people have been doing in the country, we’ve been left with no option but to reduce our costs. The situation is at least better in South Africa because the fall of the prices have been partially compensated by the weakening of the rand,” he said.

“In Zimbabwe we don’t have that luxury because our income is in United States dollars. We’re looking at rationalising and reducing costs to make sure we remain profitable and viable and that our shareholders can continue to invest in new projects.”

To that end, Chibafa said the third largest platinum company has since engaged its suppliers to reduce their costs.

“I’m happy to say all of them have complied,” he added.

The Shurugwi based mine has also moved in to cut “unnecessary” costs in its operations to ensure that it remains a viable mine in the short term.
Rationalisation at the mine comes as Anglo-American financial results for the third quarter ending 30 September shows that production remained flat at 16,000 ounces for the quarter despite a five day shut down for general plant maintenance, due to grade optimisation.

However, the group’s total platinum production increased by 14 percent to 614,000 ounces compared to 541,000 ounces during the same period last year.

Unki mine has since shelved its expansion project pending changes in market conditions citing declining global market prices.

In July this year, leading mobile phone operator, Econet Wireless Zimbabwe, also requested its local and international suppliers to cut prices by 15 percent as part of its costs cutting measures.