7 December 2012

Zimbabwe: Mimosa Worried Over Platinum Prices

MIMOSA Mining Company says it will need to maintain stringent cost management, high efficiency and optimum production levels to counter the negative effects of slowing metal prices. Speaking during the launch of the firm's Let's Go Zero Campaign in Zvishavane recently, resident director Mr Peter Chimboza said world market platinum prices were falling.

"Things sometimes get really difficult. Right now we have a major challenge on the world market prices for platinum. Prices are starting to drop and they are dropping very fast," he said.

"The only thing we can do ourselves is to work very hard, continue to manage our costs, continue to get good production, continue to get the right efficiencies, continue to do the right things in terms of quantities we use and continuously try to improve the processes," Mr Chimboza said.

He added that these objectives would only be achievable if the workers demonstrated dedication and commitment to work to achieve optimal results at a time prices are going down.

Platinum prices opened the year at US$1 415 per ounce and rose to hit a five-month high of US$1 728 per oz in February.

Thereafter, they started fluctuating but peaked briefly at US$1 714 in September before falling again to current levels of US$1 515.

An unanticipated fall in the price of metal prices may negatively impact-targeted revenue and profits for companies resulting in the affected companies shares taking serious knocks.

While Mimosa Mining Company is not a listed entity, any negative effect on profits or revenue reflect in the accounts of its joint owners, Aquarius and Impala Platinum of South Africa, both of which are listed on the Johannesburg Stock Exchange.

Mimosa's "Let's Go Zero" initiative, which is a partnership with the Traffic Safety Council, Buy Zimbabwe's My Own Boss reality TV series, Environmental Management Authority and the National Aids Council is aimed at ensuring zero work-related accidents, avoiding all road accidents, eliminating new HIV infections and halting deforestation.

Mines and Mining Development Minister Dr Obert Mpofu had earlier launched the campaign at national level on October 15, 2012, before the recent launch on the initiative in Zvishavane.

"Mimosa has always carried the Zero Harm message, placing strong emphasis on our most valuable asset - human resources.

"This emphasis was exhibited recently by the swift reaction and crisis management of our teams during a recent fire incident which threatened the lives of our workers," said Mr Chimboza.

Ex-Midlands governor Mr Cephas Msipa said Mimosa's "Zero Harm" campaign was an important safety initiative targeting zero road accidents, zero pollution and deforestation, zero new HIV infections and zero accidents at the workplace.

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