Zimplats says it is engaging the government after authorities gave fresh notice to compulsorily acquire land within the company’s special mining lease area.
BY BUSINESS REPORTER
Last month, the government gave fresh notice to compulsorily acquire land measuring 27 948 hectares within the operating subsidiary’s special mining lease area.
In a fourth quarter report for the period ended December 2016, Zimplats said the new notice repealed all previous notices issued by the government in respect of its proposed compulsory acquisition of this portion of the operating subsidiary’s mining lease area.
“The operating subsidiary has 30 days from January 13, 2017 to lodge an objection to the proposed compulsory acquisition. The operating subsidiary is engaging the government of Zimbabwe on the matter,” it said.
The negotiations come as Zimplats recorded a 28% jump in profit, after royalties to $20,61 million in the fourth quarter ended December 2016 from the previous quarter attributed to an overall increase in revenue.
In the previous quarter ended September, profit after royalties was $16,15m.
Zimplats said revenue increased by 41% to $139,18m from the previous quarter ($98,5m) largely due to the 70% increase in base metal (platinum, palladium, gold and rhodium) sales volumes.
“Revenue increased by 41% from the previous quarter largely due to the 70% increase in 4E metal sales volumes, which was partly offset by lower metal prices (revenue per 4E ounce decreased by 17% from the previous quarter),” Zimplats said.
Royalties increased by 39% during the period under review to $3,4m from the previous quarter’s $2,45m.
The 4E metal sales volumes increased by 33% to 133 978 ounces from 100 392 ounces recorded in the previous quarter.
Comparatively, the change was a 4% increase from 2015’s 129 378.
Zimplats said the tonnes mined during the period were marginally higher than the previous quarter owing to sustained good operational performances across all the mines.
It said the redevelopment of Bimha Mine, expected to add to Zimplats total output, remained on schedule to reach full production by April 2018.
A total of $24m has been set aside for the project as of December 31, 2016 against an approved total project budget of $92m, it said.