Unki set up gobbles $400m

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Anglo-American Platinum (Amplats) says it has so far spent $400 million from the $450 million initial capital earmarked for its Shurugwi unit, Unki Mine.

GWERU – Anglo-American Platinum (Amplats) says it has so far spent $400 million from the $450 million initial capital earmarked for its Shurugwi unit, Unki Mine.

The chief financial officer, Collin Chibafa told The Source that the first phase of Unki Mine involved setting up of the mine site, a concentrator and housing for its employees.

Setting up of mine site and the concentrator cost $167 million and $170 million, respectively and was completed in January 2011 when Unki was commissioned.

The remainder was channelled towards the mine’s corporate social responsibility programmes and the housing project at Impali Source farm, which is nearing completion.

Chibafa said of the $450 million initial capital injected into the project, $50 million still remained, which will be used between now and June to complete the housing project.

“We have about 900 housing units under construction which should be complete and ready for occupation by July this year,” he said.

Chibafa said that the mine would also hand over infrastructure worth $35 million to Shurugwi Town Council upon completion of the housing project.

“We have developed roads, sewer and water reticulation systems among other infrastructure at Impali, at a total cost of $35 million. The houses will remain Unki property,” he said.

Unki produced 64 500 ounces of platinum in 2012. Plans to double production at the Shurugwi based mine at a cost of $400 million have been set aside owing to the fall in the price of platinum to below $1 500 per ounce on the world market.

Chibafa said the expansion project would only be considered after completion of the housing project.

Unki’s parent company, Amplats, signed a $143 million deal in November 2012 for the transfer of 51% shareholding to local black investors, a state fund and community trusts. The deal, designed to meet Zimbabwe’s empowerment law which requires majority local control in all major investments, is to be funded by future dividends. – The Source