Zimbabwe Platinum Mines (Zimplats) has provisionally approved construction of the first phase of an underground mine and concentrator at the company's Ngezi opencast operation in Zimbabwe.

The board of the Australian-listed miner gave the project the green-light subject to a number of issues being resolved with the Government and shareholders.

According to Mining Weekly, Zimplats is now organising a special general meeting of shareholders to allow funding for the project to be authorised. The first phase is estimated to cost $110-million.

The go-ahead for the underground mine follows the successful completion of a bankable feasibility study at Ngezi, which contributed just under 15 per cent of the opencast mine's 409,000 tonnes of ore in the three months up to the end of June.

"Satisfactory progress continues to be made at the underground trial mine, and it is encouraging to report that the planned monthly tonnage per 'fleet unit' has been achieved," Zimplats told the Australian Stock Exchange.

Zimplats is 83.44 per cent-owned by Impala Platinum (Implats), the world's second-biggest platinum group metals miner.

New CEO Mike Houston said that the first phase of the underground programme would be commissioned in 2006, adding 50,000 oz/y to Ngezi's current production of 85,000 oz/y.