Anglo ups Zim mine cost to US$200m

HARARE – The world’s top ranking platinum producer Anglo Platinum said on Wednesday the capital cost for its jointly owned Unki project in Zimbabwe had more than doubled to US$200 million, but planned production would also increase.

“The revised capital cost of the project is now US$200 million,” Trevor Raymond, Angloplat senior manager for investor relations, said in written response to questions from Reuters. South Africa’s Angloplat also said the planned mine’s next phase depended on talks with the government.Angloplat and Anglo American Zimbabwe (Amzim) are jointly developing the country’s third platinum mine situated in central Zimbabwe.Officials had initially budgeted US$90 million for Unki’s capital cost but an additional feasibility study showed the mine could ramp up output to 120 000 tonnes per month from 85 000 tonnes at the higher cost.Initial production was now expected in 2008 instead of 2007.Angloplat and Amzim had previously said they planned to sell a 20 per cent stake in Unki to local investors but President Robert Mugabe’s government in March said it planned to amend the mining law to give the state a 51 per cent stake in all foreign-owned mining companies.The other two platinum mines in the country are Ngezi, which is run by Zimbabwe Platinum Mines, itself majority owned by South Africa’s Impala Platinum Holdings Ltd (Implats) and Mimosa, jointly owned by Implats and Aquarius Platinum.The three are situated on Zimbabwe’s Great Dyke region which has the second largest platinum ore reserves in the world after South Africa.Nampa-ReutersSouth Africa’s Angloplat also said the planned mine’s next phase depended on talks with the government.Angloplat and Anglo American Zimbabwe (Amzim) are jointly developing the country’s third platinum mine situated in central Zimbabwe.Officials had initially budgeted US$90 million for Unki’s capital cost but an additional feasibility study showed the mine could ramp up output to 120 000 tonnes per month from 85 000 tonnes at the higher cost.Initial production was now expected in 2008 instead of 2007.Angloplat and Amzim had previously said they planned to sell a 20 per cent stake in Unki to local investors but President Robert Mugabe’s government in March said it planned to amend the mining law to give the state a 51 per cent stake in all foreign-owned mining companies.The other two platinum mines in the country are Ngezi, which is run by Zimbabwe Platinum Mines, itself majority owned by South Africa’s Impala Platinum Holdings Ltd (Implats) and Mimosa, jointly owned by Implats and Aquarius Platinum.The three are situated on Zimbabwe’s Great Dyke region which has the second largest platinum ore reserves in the world after South Africa.Nampa-Reuters