A future lined in platinum?

Zimbabwe is destined to be the second largest platinum producer in the world by the year 2000 according to Mr Peter Vanderspuy from the mining company Delta Gold of Australia. He was speaking at the signing of an agreement between the government of Zimbabwe, Delta Gold and BHP Minerals for the development of the Hartley platinum project. Investment in the project will be some US$225m, providing for the Hartley mill, concentrator, smelter, base metal refinery and underground development that will begin in September. The first ore will be produced in 1995.

Hartley is projected to produce 150,000 troy ounces of platinum, 110,000 ounces of Palladium, 23,000 ounces of gold, 11,500 ounces of rhodium as well as quantifies of copper and nickel every year. Initially, these metals will be stockpiled, awaiting the completion of the processing facilities, but by 1996 Hartley should be fully operational and look forward to 20 years of productive life. With unit costs put at approximately US$225 per ounce Hartley will prove to be a highly cost effective operation, cheaper than South African companies like Northam and Rusplat, level with Lonrho, although more expensive than Pprust.

Containing the largest known deposits of platinum group metals in the world, the Hartley mine will have a dramatic impact on Zimbabwe. It will employ 2,700 people.

If as Mr Vanderspuy suggests, it can produce 600,000 ounces of metal annually, it will give Zimbabwe double the foreign exchange earnings presently drawn from tobacco production.

Equally, the technology used and the new investment it may generate will have a knock-on effect for Zimbabwean industry. Mr Vanderspuy believes that the motor industry could benefit, with the creation of other new jobs in exhaust catalyst production.

But this latest agreement between the government and foreign investors is indicative of the new business climate that the World Bank sponsored Structural Adjustment Programme has created in the country and will almost certainly coax other foreign investors to get involved in Zimbabwean industry.

The Hartley agreement ensures security of tenure for investors and stability of fiscal terms according to the Minister of Mines, Mr Edison Zvobgo, but just as importantly, the Zimbabweans appear to have allowed BHP Minerals to market the platinum group metals without having to go through the state owned Minerals Marketing Corporation of Zimbabwe (MMCZ).

Gold produced will be sold by the Reserve Bank of Zimbabwe, with copper and nickel left to MMCZ. This drawing back from state involvement in foreign run enterprises will warm the cockles of foreign businessmens hearts.