Published: 20 hours ago

Impala Platinum Holdings' Zimbabwe unit, Zimplats, is set to triple its concentrate processing capacity with the commissioning of a new smelter as part of its ambitious $1.8 billion expansion plan. The new facility, located in Selous about 80 kilometers west of Harare, can process 380,000 tons of concentrate annually, according to Zimplats Chair Thandi Orleyn during the smelter's official opening.

This expansion forms a critical component of Zimplats' 10-year investment strategy running through 2031, with $1.1 billion already allocated towards the project. Orleyn emphasized that the plant is strategically designed not only to serve Zimplats' operations but also to process feeds from other existing and future producers of platinum group metals (PGMs) in Zimbabwe. These metals are highly valued across industries for their corrosion resistance, heat tolerance, and catalytic properties.

The move aligns with a broader trend across Africa, where mining firms and governments aim to increase local beneficiation—processing raw minerals domestically to boost value before export. This shift comes amid challenges faced by mining companies on the continent, including government disputes over taxes and investments, as seen in recent disruptions at Barrick Mining Corp's Loulo-Gounkoto gold complex in Mali. In Zimbabwe, exporters have also grappled with the central bank's retention of hard currency, complicating revenue flows.

Speaking to Bloomberg on the sidelines of the commissioning ceremony, Orleyn acknowledged concerns over Zimbabwe's currency volatility but expressed optimism about the company's long-term relationship with the country. "There is a sense that this is a long-term relationship and the currency volatility in a geopolitical environment as we are facing at the moment is something to be expected," she said.

Zimbabwe holds the world's third-largest platinum reserves after Russia and South Africa, positioning it as a key player in the global market. Mineral exports—including gold, chrome, and diamonds—account for more than half of the country's revenue, highlighting the sector's critical role in the national economy.

With the new smelter operational, Zimplats is poised to not only increase its own production efficiency but also to bolster Zimbabwe's mining industry by providing processing services to other producers, potentially stimulating further investment and growth in the sector.
- NewZimbabwe

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