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Zimbabwe's Mimosa revives $130 Million platinum project following price rebound

A Zimbabwean executive revealed on Thursday that the Mimosa Platinum Mine, owned jointly by Impala and Sibanye Stillwater in Zimbabwe, has revived its $130m North Hill Life-extension Project after a recovery in metal prices.

Mimosa, Zimbabwe’s second-largest?platinum manufacturer after Impala’s Zimplats suspended the project in 2020 as prices plummeted amid destocking and weak automotive demand, with expectations of rapid adoption of electric vehicles.

The price of platinum group metals, used as autocatalysts, has recovered since then. This is due to a tight supply coming from the top producer in South Africa.

Mimosa is looking at an extension of its mine life, as South Hill ore becomes depleted and more expensive to mine. This was revealed by Stephen Ndiyamba, the general manager, during a mining conference held in Victoria Falls.

Ndiyamba stated that "currently, we are working on internal consideration of a mine life extension project. This will require an?capital expenditure of approximately $130 million."

He added that "this has the potential to replace our current operations on South Hill, and extend mine life by 15 years."

South African miner, who account for about 70% of global production, are cautious in their plans to increase output, despite the recent price rise.

Impala, for example, has a preference for life-extension programs to maintain production. Reporting by Chris Muronzi. Nelson Banya is the writer. Mark Potter (editing)

(source: Reuters)