Zimplats Reassures Investors on Zimbabwe Platinum Mines

As with Anglo American, Zimplats, the South African mining company with the largest platinum mining operation in Zimbabwe, reassured its investors that its holdings are secure and operating smoothly.

As the Guardian [UK] Business page reports today:

"Zimplats operations and the expansion project at Ngezi, Zimbabwe are operating satisfactorily," the firm said in a statement. The firm has open-cast and underground operations, located south-west of Harare.

"Zimplats has recently experienced limited political activities at its operations. These activities however, have not impacted on the safety of personnel nor have had a material effect on company operations."

Zimbabwe, which has the second-largest platinum reserves after the world's top producer South Africa, is mired in a political crisis over a presidential run-off on Friday.

President Robert Mugabe went ahead with the election even after opposition leader Morgan Tsvangirai withdrew, saying violence by Mugabe's supporters meant it could not be fair, and despite widespread international condemnation.
Zimplats said that in the short to medium term, its major challenges were retention of skills, reliable power supplies and the rebuilding of the local supplier network."

Zimplats and Anglo-American are in competition with Chinese mining interests in exploiting Zimbabwe's extensive platinum reserves. Platinum prices are extremely high at present, in part in anticipation of future demand for fuel-cell manufacturing.

As the US and the UK talk of expanding sanctions against Zimbabwe, it will be interesting to see if platinum mining enters the picture, or will it be excluded for its strategic importance?

Brings to mind the debate over chrome mining in Rhodesia during the sanctions debate of the 1970s.