South Africa firm targets Zimbabwe platinum

SOUTH Africa-based diversified mining group African Rainbow Minerals (ARM) says it is looking at investing in Zimbabwe’s platinum sector as part of an ongoing regional expansion drive. Zimbabwe is increasingly becoming the next frontier for acquisitive mining companies who have been encouraged by a positive domestic operational environment as well as complementary world metal and mineral prices.

The latest to indicate interest in the country’s recovering mining industry is ARM which is owned by South African billionaire Patrice Motsepe. ARM produces platinum, gold, nickel, iron ore, chrome and coal says it is considering entering Zimbabwe’s largely undeveloped but rich platinum sector. “We are looking specifically at platinum in Zimbabwe to see what we can achieve there,” company Chief Executive Andre Wilkens said.

Zimbabwe, which has large undeveloped platinum reserves, is moving to boost investments in its mining sector which is recovering from years of decline prompted by political instability and near-economic collapse. An increase in platinum mine investment could would make more of the precious metal available to the jewellery industry, and they in turn could satisfy the ever-growing demand for platinum jewellery.

The country’s platinum sector is dominated by Impala Platinum which owns the Zimplats operation in Selous in addition to a 50 percent interest in the Zvishavane-based Mimosa platinum mine. Rival Anglo platinum is also developing the Unki platinum mine in the Midlands province town of Shurugwi.

Investors have largely welcomed the policy changes announced by the country’s coalition government saying that it will help to improve the country’s economy, especially through platinum sales to the jewellery industry.