ZIMASSET AWARENESS SEMINAR FOR MEMBERS OF THE PARLIAMENT OF ZIMBABWE 12 - 13 MARCH 2014.

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!!!!!!!!