Zimbabwe needs a USD5.3 billion investment and stable policy to boost platinum output - report
According to a Chamber of Mines report obtained by Reuters, the country of Zimbabwe would need to have USD5.3 billion worth of investments and a stable set of mining policies in order to challenge Russia as a formidable platinum producer. Russia currently holds the second biggest market share in the platinum market. Zimbabwe, on the other hand, produces 6% of the world's platinum.
Data courtesy of Chamber showed that Russia produced a platinum volume of around 800,000 ounces last year. South Africa's platinum output last year was at 4.1 million ounces.
"It's evident from 2017 onward Zimbabwe's production of platinum will be approaching that of Russia. "This growth projection, however, requires significant investment," the Chamber said.
In its report, Chamber said Zimbabwe must increase its production of platinum to over 500,000 ouncers annually. Once the production volume level would be achived, there would be justification of constructing precious metal smelters and refineries. As such, the Chamber said, USD2.8 billion would be needed to build mines, USD2 billion for construction of processing plants, and up to USD500 to ensure that power supply would be stable and adequate for such production.