Transcript EXPLOITATION AND VALUE ADDITION OF PGMs

ZIMASSET AWARENESS SEMINAR FOR MEMBERS
OF THE PARLIAMENT OF ZIMBABWE
12 - 13 MARCH 2014
AS ZIMASSET TAKES OFF, SO DOES VALUE
PLATINUM GROUP METALS
 Platinum Group Metals (PGMs)
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Platinum
Rhodium
Paladium
Ruthenium
Iridium
Osmium
 PGMs exist in association with other Metals
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Gold
Copper
Cobalt
Nickel
Silver
The Great Dyke of Zimbabwe: Sitting on Gold!!!
THE GREAT DYKE
 The 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
N
GREAT DYKE
Kariba
Mt. Darwin
Chinhoyi
Binga
HARARE
Kadoma
Hwange
Kwekwe
Mutare
Gweru
Masvingo
Bulawayo
Explanation
Karoo Supergroup
Umkondo Supergroup
Magondi Supergroup
Sijarira Group
Great Dyke
Greenstone Belts
Granites of various ages
0
100km
Beitbridge
GEOLOGY OF THE DYKE
 The 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 Mining
 Mechanised 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 RESOURCES
UNKI MINE AS AT DECEMBER 2012
Million
tonnes
4E
g/t
4E
Million
Troy Oz
Reserves
Total
53.70
3.76
6.5
Resources
Total
186.20
4.35
26.0
RESERVES AND RESOURCES
MIMOSA AND ZIMPLATS AS AT 30 JUNE
2013
RESOURCES
Tonnes Mt
ZIMPLATS & MIMOSA
1879.9
Million
Pt Oz
99.4
RESERVES
Tonnes (Mt)
ZIMPLATS &
MIMOSA
264.6
Million
Pt Oz
13.8
BENEFICIATION
Milling
Flotation Process to Upgrade PGMs
The PGMs and Base Metals are floated using specialised reagents
Concentrate & Quality Control & Metal
Accounting
Beneficiation
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
Element
BENEFICIATION
 Currently 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
BENEFICIATION
UNKI
&
MIMOSA
BENEFICIATION
ZIMPLATS
ZIMBABWE’S COSTS COMPETITIVENESS
2013 Typical Production costs comparison: Impala platinum Mine
Cost/tonne
Milled ($)
Cost per PGM
Oz in Matte ($)
Cost per
Platinum Oz in
Matte ($)
ZIMPLATS
(Zimbabwe)
55
622
1307
Marula
(South Africa)
98
849
2230
Mine
The Zimbabwean PGM mines are relatively shallow (200metres VS 2km deep), lowcost operations run by a small, skilled and less militant workforce.
The industrial relations climate in Zimbabwe makes it more conducive to operate a
mine in the country than in South Africa.
WORLD PLATINUM PRODUCTION
 World Supply of
Platinum,
including
recycling (2012)
COUNTRY
South Africa
OUNCES
4,095
Russia
800
Zimbabwe
340
Others
405
Recycling
2,030
Total
7,670
WORLD PLATINUM PRODUCTION
 World Supply of
Platinum, excluding
recycling (2012)
Country
South Africa
Ounces
4,095
Russia
800
Zimbabwe
340
Others
405
Total
5,640
HOW DO WE GET WHERE WE WANT TO GO???
© Rowan Gibson
Potential for Further Beneficiation and Value
Addition in Zimbabwe
 The case for Base Metal and Precious Metal refining in
Zimbabwe is overwhelming, especially given the vast
PGM resources in the country.
 As production capacity continues to increase, the
capacity of the refineries in South Africa will be
saturated.
 The potential employment and downstream economic
benefits also favour development of beneficiation
facilities in Zimbabwe.
Potential for Further Beneficiation and Value
Addition in Zimbabwe
 For Base Metal Refining, available facilities are;
 Empress Nickel Refinery (RIOZIM)
 Makwiro (ZIMPLATS), using the mothballed BMR plant,
 Bindura Nickel (Mwana Africa)
 Alaska (ZMDC)
 or construction of a new BMR.
 For Precious Metals, it is necessary to construct a Precious Metal
Refinery for the recovery of PGMs, Gold and Silver.
 Expansion should be synchronized with power supply expansion
(100MW)
VALUE ADDITION
PLATINUM
INVESTMENTS
JEWELLERY
AUTO CATALYST
DENTAL
EQUIPMENT
VALUE ADDITION
INVESTMENT
GOLD
GOLD COINS
JEWELLERY
ELECTRONICS
VALUE ADDITION
COPPER
COPPER CABLE
VALUE ADDITION
NICKEL
STAINLESS
STEEL
VALUE ADDITION
OFF-GAS
FERTILIZER
CHEMICALS
Prices (US$/troy oz)
WORLD PLATINUM PRICES
Date
VALUE ADDITION CUSHIONS PRODUCING COUNTRIES FROM PRICE FLUCTUATIONS
CONCLUSIONS
 The 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
CONCLUSIONS
 In 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.
CONCLUSIONS
 This could be facilitated by Government Policy and
legislation which :
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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.
WE ALSO NEED A TEAM OF EXPERTS TO ADVISE &
WORK ON THIS SPECIAL PROJECT
© Rowan Gibson
Thank you for listening!!!!!!!!