The expansion of Zimbabwe Platinum's Ngezi mine has been hit by ongoing economic uncertainty in the country but "remains on schedule", the firm has announced.

However, a statement from the firm issued as part of its quarterly report said that in order to maintain progress of the Phase 1 expansion in the face of the uncertain economic conditions it has been forced to import goods and services that might otherwise have been sourced locally.

The statement said: "The deteriorating economic situation in Zimbabwe has, however, made implementation of the project a lot more challenging than was originally envisaged with many of the goods and services planned to be sourced locally now being imported."

The platinum giant has committed $41 million of the required $340 million funding for the expansion.

Expansion of the mine includes development of mining portals one and four as well as the construction of a new concentrator, further accommodation for staff and an upgrade of local amenities.

Once the work is complete the expansion is expected to boost output of platinum by 160,000 oz by 2011.

Source:

Zimbabwe: Zimplats Hit Hard By Worsening Economy, 09/11/07
http://allafrica.com/stories/200711080799.html

Zimplats expansion, Zimbabwe, 19/10/07
http://www.miningweekly.co.za/article.php?a_id=119365

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