Impala Platinum (Implats) says its subsidiary Zimplats will invest heavily in a third expansion project to increase production to 360,000 oz/y of platinum.

The company is currently expanding its operations to boost output from 90,000 oz/y to 270,000 oz/y in 2014.

Last month, Implats unveiled its plans to establish a community share ownership trust in Zimbabwe as part of its measures to comply with the country's Indigenisation Policy.

Under the agreement, the company agreed to sell ten per cent of its shares to local investors.

The trust was set up after Zimbabwe youth development, indigenisation and empowerment minister Saviour Kasukuwere said that the company's original plan did not meet the minimum requirements of the law.

He also threatened Zimplats with the revocation of its mining licence.

Foreign-owned mining companies must sell a 51 per cent stake to local black investors to meet the demands of the Indigenisation Policy.

In August, chief executive officer David Brown told Mining Weekly that the legislation threatened the future of such expansion plans

But with the establishment of the trust, it appears Implats is more confident in its position in Zimbabwe.

Speaking at the launch of the trust in October, Mr Brown is quoted by AFP as saying: "The company has to date invested $700 million. It is in the process of establishing the second phase of our expansion plan which will cost $500 million.

"After the completion of the expansion in 2014, further expansion including an underground mine and a concentrator valued at $1 billion will be undertaken."

Sources:

Platinum miner’s expansion plan to soften indigenisation law talks (04/11/11)

Zimplats to invest up to $1 billion in Zimbabwe (13/10/11) 

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