Platinum mine for Zimbabwe

Australian mining company Delta Gold and the Zimbabwean government have signed a contract for a new platinum mine that represents the biggest single foreign investment in the country since its independence was achieved in 1980.

The Hartley project will be one of the world’s biggest platinum mines and illustrates the mining sector’s growing role in Zimbabwe’s economic development, Agence France Presse reports.

The investment of US$230 million is the biggest foreign investment in the country’s mining sector since 1965.

The project, at Chegutu, 50 miles west of the capital city Harare, will be operated by Delta and its Hartley Platinum subsidiary as a joint venture with BHP. Delta will have a 33% interest and BHP the remainder.

The mine should have annual output of 150,000 oz. platinum, 110,000 oz. palladium, 11,000 oz. rhodium and 23,000 oz. gold, plus 3,000 tonnes of nickel and 2,000 tonnes of copper.

The mine should create 2,500 jobs and bring in almost US$90 million a year in foreign currency.

Under the agreement, BHP, which has undertaken construction of the mine, is also to finance an additional study. The mine is to be inaugurated in September.

Several exploration expeditions along the Great Dyke geological formation have revealed substantial reserves of minerals, and the platinum reserves are thought to be huge (in the order of 380 million tonnes).

The rise in world platinum prices might lead to other big projects in the field, including one with Union Carbide, which is planning a platinum mine near Zvishavane, in the south.

Zimbabwe exports 90% of its mining output, which represents 35% of total exports. Mining and tobacco are the nation’s leading foreign exchange earners.

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