Staff Reporter  

In the face of a downturn in platinum group metals (PGMs) prices, Zimplats, one of the leading players in the industry, stands firm in its commitment to maintaining its annual production levels.

During the recent PGMs Industry Day Conference held in Johannesburg, Zimplats’ CEO, Alex Mhembere, outlined the company’s approach to navigating the evolving market landscape. Mhembere emphasized the paramount importance of productivity enhancements as a means to counteract the adverse effects of price declines.

“We are steadfast in our commitment to maintaining our annual production levels, leveraging productivity improvements to mitigate cost pressures. Despite market challenges, the company aims to uphold its production target of approximately 600 000 PGM ounces annually,”Mhembere said.

Furthermore, Zimplats is revisiting its investment strategy in light of prevailing market conditions. The company plans to scale back its expenditure on the ambitious 10-year, $1.8 billion expansion project announced in 2021. Instead, it will adopt a more cost-efficient approach in the upcoming financial year, commencing in July.

“We recognize the need to adapt to market realities, and as such, we are recalibrating our investment strategy to prioritize replacement capital expenditure and operational maintenance over growth-focused initiatives,” Mhembere reiterated

Meanwhile, in parallel to these strategic adjustments, Zimplats is making significant strides towards renewable energy integration. The company is nearing completion of the first phase of its 185MW PV Solar plant, with construction underway to produce 35MW of power at a cost of US$37 million.

As the company prepares to usher in a new phase of operations, Zimplats remains resolute in its pursuit of excellence amidst market challenges. With a focus on productivity enhancement, cost control measures, and sustainable practices.