Post on 23-Dec-2015
ZIMASSET AWARENESS SEMINAR FOR MEMBERS OF THE PARLIAMENT OF
ZIMBABWE12 - 13 MARCH 2014
AS ZIMASSET TAKES OFF, SO DOES VALUE ADDITION
PLATINUM GROUP METALS Platinum Group Metals (PGMs)
Platinum Rhodium Paladium Ruthenium Iridium Osmium
PGMs exist in association with other Metals• Gold • Copper• Cobalt• Nickel• Silver
The Great Dyke of Zimbabwe: Sitting on Gold!!!
THE GREAT DYKEThe Great Dyke is a
mineral rich natural occurrence running from SSW to NNE in the central part of Zimbabwe for 550km,
Its width varies from 3km to 12km.
It is hosts the second largest deposit of PGMs in the world after RSA
The Dyke also hosts the largest known high grade chromite deposit in the world
0 100km
N
K aroo S upergroup
U m kondo S upergroup
M agond i S upergroupS ija rira G roup
G rea t D yke
G reenstone B e lts
G ran ites o f va rious ages
Explanation
H w ange
B inga
Kariba
C hinhoyi
M t. D arw in
HARAREKadom a
Kw ekw e
G w eru
Bulaw ayo
Beitbridge
M asvingo
M utare
GREAT DYKE
GEOLOGY OF THE DYKEThe Dyke consists of 5 sub-
chambers each with a shallow synclinal structure.
Within these sub-chambers is a layer known as the Main Sulphide Zone (MSZ)
The MSZ is a 1 – 2.5m thick layer enriched in sulphide minerals. It contains economic concentrations of all six platinum metals (PGM)
World Ranking
The platinum resources in the Great Dyke are second in the world only to those of the Bushveld Igneous Complex of South Africa.
The Great Dyke of Zimbabwe is unique in that the MSZ outcrops on some parts and near surface making platinum mining on the dyke a low cost production, compared to other leading platinum operations
THE MAIN PRODUCERS IN ZIMBABWE
COMPANY CURRENT CAPACITY (Pt Oz /YR)
ZIMPLATS 270 000
MIMOSA 110 000
UNKI 60 000
TOTAL 440 000
ZMDC is still at various stages of development in JV arrangements with its partners
Platinum MiningMechanised
Underground Mining Method is employed for extraction of ore.
ZIMPLATS, Mimosa and Unki employ the bord and pillar mining method is employed to extract the ore.
All have invested heavily in mining equipment that include drilling jumbos, Load Haul Dump trucks, underground dump trucks and conveyor belt systems.
RESERVES AND RESOURCESUNKI MINE AS AT DECEMBER 2012
Million tonnes
4Eg/t
4EMillion Troy Oz
Reserves Total 53.70 3.76 6.5
Resources Total 186.20 4.35 26.0
RESERVES AND RESOURCESMIMOSA AND ZIMPLATS AS AT 30 JUNE
2013RESOURCES
Tonnes Mt MillionPt Oz
ZIMPLATS & MIMOSA 1879.9 99.4
RESERVESTonnes (Mt) Million
Pt OzZIMPLATS & MIMOSA
264.6 13.8
EXPLORATION
MINING
CONCENTRATION
Crushing, Grinding & Flotation
SMELTING AND CONVERTING
BASE METAL REFINING
PRECIOUS METAL REFINING
Ore
High grade concentrate
SO2 rich off-gas
Slag
Tailings
Nickel, copper & cobalt
Gold & Silver
Platinum, Rhodium, PalladiumRuthenium, Irridium & Osmium
High grade matte
BENEFICIATION
Milling
Flotation Process to Upgrade PGMs
The PGMs and Base Metals are floated using specialised reagents
BeneficiationElement Feed Concentrate Converter
(g/t) (g/t) Matte
Platinum 1.81 43.27 700.00
Palladium 1.40 33.27 564.00
Rhodium 0.16 3.51 64.25
Ruthenium 0.16 3.34 56.50
Iridium 0.12 1.69 26.31
Gold 0.30 5.88 80.88
Nickel 1560 40820 458130
Copper 1200 31465 337500
BENEFICIATIONCurrently Unki and MIMOSA produce concentrates
which are transported by road to RSA for Smelting and further beneficiation
ZIMPLATS smelts its concentrates to produce converter matte, is sent to South Africa for base metal refining to recover Nickel, Copper and Cobalt and precious metal refining to recover the 6 PGMs as well as Gold and Silver.
There is need to have a Base Metal Refinery and Precious Metal Refinery in Zimbabwe…..an accepted Policy position
EXPLORATION
MINING
CONCENTRATION
Crushing, Grinding & Flotation
SMELTING AND CONVERTING
BASE METAL REFINING
PRECIOUS METAL REFINING
Ore
High grade concentrate
SO2 rich off-gas
Slag
Tailings
Nickel, copper & cobalt
Gold & Silver
Platinum, Rhodium, PalladiumRuthenium, Irridium & Osmium
High grade matte
UNKI&MIMOSA
BENEFICIATION
EXPLORATION
MINING
CONCENTRATION
Crushing, Grinding & Flotation
SMELTING AND CONVERTING
BASE METAL REFINING
PRECIOUS METAL REFINING
Ore
High grade concentrate
SO2 rich off-gas
Slag
Tailings
Nickel, copper & cobalt
Gold & Silver
Platinum, Rhodium, PalladiumRuthenium, Irridium & Osmium
High grade matte
ZIMPLATS
BENEFICIATION
ZIMBABWE’S COSTS COMPETITIVENESS2013 Typical Production costs comparison: Impala platinum Mine
Mine Cost/tonne Milled ($)
Cost per PGM Oz in Matte ($)
Cost per Platinum Oz in
Matte ($)
ZIMPLATS (Zimbabwe)
55 622 1307
Marula (South Africa)
98 849 2230
The Zimbabwean PGM mines are relatively shallow (200metres VS 2km deep), low-cost operations run by a small, skilled and less militant workforce.
The industrial relations climate in Zimbabwe makes it more conducive to operate a mine in the country than in South Africa.
WORLD PLATINUM PRODUCTION
World Supply of Platinum, including recycling (2012)COUNTRY OUNCES
South Africa 4,095
Russia 800
Zimbabwe 340
Others 405
Recycling 2,030
Total 7,670
WORLD PLATINUM PRODUCTION
World Supply of Platinum, excluding recycling (2012)
Country OuncesSouth Africa 4,095
Russia 800
Zimbabwe 340
Others 405
Total 5,640
© Rowan Gibson
HOW DO WE GET WHERE WE WANT TO GO???
Potential for Further Beneficiation and Value Addition in ZimbabweThe case for Base Metal and Precious Metal
refining in Zimbabwe is overwhelming, especially given the vast PGM resources in the country.
As production capacity continues to increase, the capacity of the refineries in South Africa will be saturated.
The potential employment and downstream economic benefits also favour development of beneficiation facilities in Zimbabwe.
Potential for Further Beneficiation and Value Addition in Zimbabwe
For Base Metal Refining, available facilities are;Empress Nickel Refinery (RIOZIM)Makwiro (ZIMPLATS), using the mothballed BMR plant, Bindura Nickel (Mwana Africa) Alaska (ZMDC)
or construction of a new BMR.
For Precious Metals, it is necessary to construct a Precious Metal Refinery for the recovery of PGMs, Gold and Silver.
Expansion should be synchronized with power supply expansion (100MW)
VALUE ADDITION
DENTALEQUIPMENT
AUTO CATALYST
JEWELLERY
PLATINUMINVESTMENTS
VALUE ADDITION
GOLD
ELECTRONICS
JEWELLERY
INVESTMENT
GOLD COINS
VALUE ADDITION
COPPER COPPER CABLE
VALUE ADDITION
NICKEL
STAINLESS STEEL
VALUE ADDITION
OFF-GAS
FERTILIZER
CHEMICALS
WORLD PLATINUM PRICESPr
ices
(US$
/tro
y oz
)
Date
VALUE ADDITION CUSHIONS PRODUCING COUNTRIES FROM PRICE FLUCTUATIONS
CONCLUSIONSThe Great Dyke hosts the world's second
largest known PGM resources after the Bushveld complex of South Africa
The Main Sulphide Zone which hosts the PGMs and Base Metals is shallow, hence mining can be done at relatively low cost in comparison with other leading Platinum operations on the production cost curve.
The operating Mines carry out limited beneficiation stages in the country – and Government has pushed for more beneficiation and value addition
CONCLUSIONSIn line with the Government's ZIMASSET
economic blueprint, it is required that beneficiation and value addition of PGMs and other minerals be carried out in the country.
Smelting, Base Metal Refining and Precious Metal Refining and further Value Addition should be undertaken within the country.
About $1-$2 billion investment is required to put up the necessary processing plants, support infrastructure and increase power generation.
CONCLUSIONSThis could be facilitated by Government Policy
and legislation which : creates a stable and predictable investment climate provides investment incentives Promotes development of skills encourages skilled Zimbabweans living in the diaspora
to return attracts specialist skills that are in short supply in the
country promotes research and technology development
The socio-economic benefits of such investment and development include increased revenue inflows, industrialisation and employment levels.
© Rowan Gibson
WE ALSO NEED A TEAM OF EXPERTS TO ADVISE & WORK ON THIS SPECIAL PROJECT
Thank you for listening!!!!!!!!