Russia-Zimbabwe joint venture Great Dyke Investments (GDI) says it will invest US$650m in its platinum project in Zimbabwe with the African Export and Import Bank (Afreximbank) set to be the lead financier.
The project has potential to become one of the world’s biggest platinum mines and its progress is vital to the Zimbabwean government’s plans to revive a collapsing economy.
Zimbabwe holds the world’s second largest platinum reserves after SA with PGMs contributing significantly to the country’s export earnings.
The GDI platinum project, whose board is chaired by former Implats CEO David Brown, is earmarked to be Zimbabwe’s second-largest platinum concern after Zimplats, which is the largest mining company in Zimbabwe.
To date, GDI has invested close to US$100m in exploration and mine construction.
Speaking to Business Day in Harare, GDI vice-chair Igor Higer said the company is planning its investment to top US$650m by 2022.
“Total capital to bring the Darwendale phase 1 to production is projected above US$650m which is to be invested during 2021-2022.”
Higer said to date, the company has conducted extensive excavation works while engineering works are in progress.
“All engineering works, FEED (front end engineering design) and detailed engineering are slated for completion in the first quarter of 2021 so as to allow the project to move into a full-scale construction phase and long-lead items procurement.”
Last week, GDI announced that it had partnered Fossil Mining, which invested US$30m to buy a 4.4% stake in the platinum concern.
The investment consists of a cash injection as well as providing certain engineering, procurement and construction services.
GDI is 50% owned by Russia’s Vi Holding (through its JSC Afromet subsidiary) and Zimbabwe’s Landela Mining Venture.
The company plans to start mining in 2022, when construction of the mine is expected to be completed.
At a production rate of 3.5-million tonnes per annum, GDI expects to produce an average of 280,000 ounces of PGM and gold at phase 1 while the second phase will increase capacity to 10.5-million tonnes a year and PGM production of 860,000 ounces a year.
Zimbabwe is banking on ramping up platinum production as PGMs are earmarked to rake in US$3bn by 2023, in line with the country’s vision to amass US$12bn annually from minerals.
Two other new platinum mines, Karo Mining Holdings, which is part-owned by SA’s Tharisa and Bravura, owned by Nigerian billionaire Benedict Peters, have concessions to mine platinum in the country.
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