Zimbabwe-based platinum producer Zimplats, in conjunction with platinum mining companies Mimosa and Unki, would start the refurbishment of Zimplats’ Selous-based base-metal refinery (BMR) by July and recommission the facility over a 24-month period, Zimplats CEO and Zimbabwe Chamber of Mines president Alex Mhembere told Mining Weekly recently

The refurbishment of this facility, for which the platinum producers had already committed $100-million, would allow them to locally beneficiate platinum mined and formed the first stage of their response to government’s call for greater value-addition in the sector.

“As soon as we make headway [on the first facility], we will look at Phase 2, which would entail establishing bigger facilities, an additional smelter and another BMR,” Mhembere said.

“Thus [the platinum producers] are on board with government in terms of the value-addition and beneficiation in the platinum sector,” he added.

Mhembere pointed out that Zimbabwe’s diamond sector also needed significant attention with regard to beneficiation, stating that, in terms of other minerals, it was a case of re-establishing mining activities to provide feedstock for the beneficiation facilities.

Meanwhile, Mhembere said Zimababwe’s mining sector, similar to the international industry, was experiencing some difficulties owing to low metals prices.

However, the industry could get out of this situation by using a two-pronged approach focus- ing on cost management and improving produc-tivity, he explained.

Mhembere suggested that mining companies should not pay high wages, but instead first increase productivity so that increased salaries were linked to higher output.

“However, government should also come to the party in terms of rationalising the fiscal space. We think that there can be reductions in ground rentals and some government fees so that we can improve on the environment and companies [are able to improve] their viability,” he noted.

Thus, the two sides had to come together to improve the competitive environment of the mining sector, Mhembere stated, adding that greater cooperation between the private sector and government would also improve Zimbabwe’s business climate, leading to increased investment in the country.

“We are trying to engage with government and to bridge the gap of understanding so that we can compete [internationally],” he concluded.