Impala Platinum owned Zimplats injected more than $270 million (~R4.67 billion) into expansion projects and paid a dividend amounting to $205 million (~R3.54 billion) for the half year ended in June.
The miner, which according to the Finance Bill 2022 will now have to pay 5% in mineral royalties up from 2.5%, said the capital spend was on capital projects including stay-in-business, replacement and expansion projects.
More is expected to be spent in the years to come, with just one mine, Mupani Mine now forecasting to cost $386.2 million compared with the initial projection of $264 million.
This is after Zimplats upgraded Mupani Mine from the current design capacity of 2.2 million tons per annum to 3.6 million tons per annum to replace part of the tonnage contribution from Mupfuti Mine on depletion in 2027.
Meanwhile, the construction of a new 38MW furnace and an acid plant has a price tag of $520.6 million.
Currently, the group is exporting part of its metal production in concentrate form as the existing smelter cannot process all the concentrate generated from the concentrators.
In a comment accompanying the results, Zimplats said commissioning of a third concentrator plant which is currently under construction will increase the volume of concentrate produced from 144 000 tons to 163 000 tons per annum.
“The project is on course for commissioning of the smelter in January 2024 and the acid plant in August 2024,” Zimplats said.
The new furnace will increase smelting capacity from the current 135 000 tonnes of concentrate to 380 000 tonnes of concentrate.
Meanwhile revenue for the year in review declined 8% to $1.2 billion “primarily due to the decrease in the prevailing average US Dollar metal prices during the year”. Profit after tax decreased to $353.6 million, down from $563.1 million in 2021.