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Unki Mine

Lovemore Zigara Business Correspondent
THE country’s third largest platinum miner, Unki Mine, has shelved its planned mine expansion project due to the depressed price of the base metal on the world market.

The Shurugwi-based mining concern, which is a subsidiary of the world biggest platinum producer, Anglo American, recently announced plans to build a smelter at the mine. It has also set sights on completing its $120 million housing project.

Anglo American is also considering building a new mine to the tune of $400 million to double its 2012 production of 64,500 ounces. The firm is also exploring ways of boosting production figures at Unki to a level that will significantly contribute to the company’s strategy of lowering operating costs.

Unki chief financial officer, Colin Chibafa, said their expansion programme would be considered when metal prices improve.

“Any future expansion of Unki Mines will depend on the market conditions.

“The market conditions at this stage make it very difficult for any project to take off and pay back,” he said.

“So where we are at the moment, our capital focus is on the smelter and completing the housing project. When mineral prices are weak then you start getting into a survival mode. You’re therefore forced to cut on capital expenditure,” said Chibafa.

Anglo American has invested $350 million at the mine since it started operations in 2011 but is not yet a significant contributor to Amplats’ 1.5 million ounce annual output.

Amplats reported in its third quarter financial results that production has remained flat at 16,000 ounces for the period under review despite a five-day shutdown the company undertook to facilitate general plant maintenance.

According to Anglo American, Unki Mine has a life span of up to 2041, which could extend to 2055.