Impala Platinum plans Zim power deal

JOHANNESBURG – Impala Platinum (Implats), the world’s second biggest producer of platinum, said on Friday it plans to pay for the construction of a 330-kilovolt power sub-station in Zimbabwe to help with its expansion plans.

Implats also said it had an agreement in principle to import electricity from Mozambique to supply its Zimbabwe operations, as that country’s power firm was not able to meet its national electricity requirements. Zimbabwe has been hit by a severe economic crisis and hyperinflation.Shortages of electricity, foreign currency, fuel and food are signs of a severe economic crisis that has left Zimbabwe with an inflation rate above 6 600 per cent.In a presentation on its website, Implats said it planned to import the electricity from Mozambique’s hydroelectric power plant, Hidroelectrica de Cahora Bassa (HCB), to help with its planned expansions in Zimbabwe.Implats reiterated that it has agreements in place that would be taken into account when Zimbabwe assesses compliance with its new bill that requires all foreign companies to have 51-per cent local ownership.”Indications are that the government of Zimbabwe will honour its obligations,” Implats said.Implats said it had so far won 30 per cent credits towards the 51 per cent local stake requirement, by giving up some unused mining claims in Zimbabwe, which has the second richest resources of platinum after South Africa.Implats said credits were also given for “social spend”, which includes building roads and other infrastructure.Nampa-ReutersZimbabwe has been hit by a severe economic crisis and hyperinflation.Shortages of electricity, foreign currency, fuel and food are signs of a severe economic crisis that has left Zimbabwe with an inflation rate above 6 600 per cent.In a presentation on its website, Implats said it planned to import the electricity from Mozambique’s hydroelectric power plant, Hidroelectrica de Cahora Bassa (HCB), to help with its planned expansions in Zimbabwe.Implats reiterated that it has agreements in place that would be taken into account when Zimbabwe assesses compliance with its new bill that requires all foreign companies to have 51-per cent local ownership.”Indications are that the government of Zimbabwe will honour its obligations,” Implats said.Implats said it had so far won 30 per cent credits towards the 51 per cent local stake requirement, by giving up some unused mining claims in Zimbabwe, which has the second richest resources of platinum after South Africa.Implats said credits were also given for “social spend”, which includes building roads and other infrastructure.Nampa-Reuters