Mine construction at Darwendale platinum field to begin in 2017
MOSCOW. Dec 27 (Interfax) - The construction of a mining complex at the Darewndale platinum field in Zimbabwe will begin in 2017 and the field could go on stream in 2018, Vitaly Machitski, owner and president of Vi Holding, told reporters.
Design is underway now. Exploration, which has proven reserves to JORC standards, is complete, and a bankable feasibility study has been performed, he said.
"Legal safeguards against potential political risks were included in the intergovernmental agreement on the project. The Republic of Zimbabwe has assigned national status to the project and granted it a special mining lease, guaranteeing the project further concessions," Machitski said.
The Darwendale deposit's resources are about 1,400 tonnes and reserves are 200 tonnes of platinum group metals (PGMs), enough for a mine life of 20 years.
Initially, the mining complex will obtain 9 tonnes of PGMs in concentrate from 3.3 million tonnes of ore per year. First stage capex is estimated at $500 million. Eventually, capacity will rise to 10 million tonnes of ore and 30 tonnes of PGMs. Overall investment in the project is estimated at $3 billion.
Moscow and Harare signed an intergovernmental agreement on cooperation in the development of the Darwendale platinum field in September 2014. A deal on the purchase of a 50% stake in Zimbabwean Ruschrome Mining, which owns the licenses for development of Darwendale, was concluded in May 2013. The other 50% is owned by a local company which represents the interests of the state. In April 2014, Vi Holding and the Russian Federation created a consortium to develop the Darwendale deposit.