ZIMBABWE’S largest platinum producer, Zimplats, says it is still negotiating with the government in a bid to end a six-year land dispute.

Government has since February 2012 issued notices announcing its intention to forcibly seize more than half of the land that Zimplats is exploiting. Last year, then president Robert Mugabe’s government stepped up efforts to acquire the miner’s 27 948 hectares when it approaching the High Court to enforce a previous notice to seize the land.
Zimplats, which is 87 percent owned by South Africa’s Impala Platinum and has 48 535 hectares in mining claims, opposed the court application.
Government has previously defended its decision to seize the land, saying the miner had too many claims which should be distributed to new companies.
However, there has been renewed optimism in the country following the inauguration of Emmerson Mnangagwa, who has promised to respect property rights and the rule of law.
Zimplats last week said although the matter was still before the courts, “the operating subsidiary is also engaging government on the matter”.
The platinum producer also said it was still engaging the government on the indigenisation policy.
The controversial policy, that forces foreign-owned firms to cede at least 51 percent ownership to locals, was recently amended to attract increased foreign direct investment. The Act now only applies to diamond and platinum mining.
Meanwhile, Zimplats said its profit in the quarter to December 2017 went up 69 percent to $40,7 million compared to $24 million in the previous quarter.
The group’s revenue increased by 80 percent to $184 million from the previous quarter, mainly due to the sale of concentrates accumulated from the previous quarter and a four percent increase in the basket price of metals sold.
“Net operating costs increased by 84 percent compared to the previous quarter largely due to the increase in 4E sales volumes, an increase in selling expenses arising from the export of concentrate stockpiled in the previous quarter and an increase in smelter costs in line with increased running time,” the company said.
Zimplats said royalty and commission expenses increased by 76 percent from the previous quarter in line with the increase in revenue. In the period under review, the company’s cash cost per 4E ounce increased by 15 percent from the previous quarter despite the increase in production volumes mainly due to selling expenses and smelting charges for the concentrates produced in the previous quarter but only exported during the current quarter.
“Gross revenue per 4E ounce increased by four percent from the previous quarter due to higher metal prices. Net cash cost per 4E ounce increased by 17 percent from the previous quarter due to the increase in operating costs and a decrease in by-product revenue per 4E ounce,” Zimplats said.
The platinum producer indicated a two percent increase in tonnes mined from the previous quarter due to ramping up of production at Bimha Mine and a better performance at the South Pit Mine. “Tonnes milled decreased by three percent from the previous quarter due to a seven-day mill reline shutdown at the Selous Metallurgical Complex concentrator,” the company said, adding that 4E head grade was maintained at 3,24g/t.
“The furnace, which was switched back on in October 2017 after a successful planned 46-day sidewall reline shutdown, smelted 32 009 tonnes of concentrate, up from 22 654 tonnes smelted in the previous quarter,” it said.
Overall, 4E metal production in final product dropped two percent from the previous quarter mainly due to the decrease in the volume of ore milled.Concentrates produced and stockpiled during the furnace shutdown in the previous quarter were exported during the quarter under review.
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