Platinum miner Mimosa Mining Company has suspended its $134 million North Hill project due to a challenging operational environment and declining global prices. General Manager Stephen Ndiyamba announced the decision, citing a significant drop in platinum prices and other operational challenges.
Speaking at the Chamber of Mines of Zimbabwe annual conference in Victoria Falls, Ndiyamba detailed the difficulties faced by the company. “We have seen our market price fall from around $1,900 per ounce in October 2022 to just under $1,200, which is a massive reduction,” he said.
Ndiyamba explained that the North Hill project, intended to replace the South Hill mine, is now on hold. “We have planned to start what we call the North Hill Project, which is a new shaft located about six kilometers from our current operation. The $134 million project had to be suspended because we can’t afford it under the current circumstances,” he added.
The operating environment for Mimosa is tough, with softening global prices, power cuts, high electricity tariffs, and inconsistent tax regulations. The company has also reduced business capital expenditure by about 23% and retrenched staff to cut operational costs.
“We have had to do labor rationalization, which resulted in some retrenchment affecting about 33 supervisory and management employees and about 300 contractors,” Ndiyamba said. He also mentioned efforts to reduce production costs by 10% through negotiations with business partners and service providers.
Mimosa has taken various measures to stay afloat. “We have suspended non-critical expenditure and looked at initiatives to increase productivity and efficiency,” Ndiyamba noted. The company has seen a significant improvement in operational efficiency, resulting in a 3% increase in recovery rates.
Despite the setbacks, Mimosa remains hopeful. “We are confident that if the prices were bottom-up from where they are now, we will be able to revive and remain in business,” Ndiyamba said. The company is also exploring local beneficiation opportunities and has an agreement with Zimplats to use their smelter once it is operational.
Mimosa is looking to the future with plans to transform its mine into a smart mine by embracing technology. “We are looking at various technologies that will help us become a more efficient and focused corporation,” Ndiyamba stated.
Mimosa, jointly owned by South Africa’s Sibanye-Stillwater and Impala Platinum, produces about 250,000 ounces of platinum annually at its operations near Zvishavane. The current mine site, South Hill, will run out in 10 years, prompting the need for the North Hill project.
Additionally, Mimosa had planned to spend $38 million on a plant optimization project to improve processing efficiencies and recover more from mineral ore. The company employs over 3,500 people, both permanent and contractors, and continues to seek ways to enhance its operations amid market challenges.
Source: Newsday
