Zimbabwe is still 'our most stable operation' says Impala Platinum
What
does the recent election change for Zimbabwe's biggest investor? Not much, says
Nico Muller, the head of Zimplats holding company Implats. We've seen it all
before, he suggests.
In 2021, Zimplats announced a US$1.8 billion investment in Zimbabwe to expand
mining and processing operations, the single largest FDI commitment over the
past five years.
As political controversy rages over the election, Muller says there is nothing
new. If anything, he says, despite the country's troubles, Zimbabwe remains
Implats' most stable asset.
Muller was asked by South Africa's Moneyweb: "What does the continuation
of the status quo mean for your business there in the foreseeable future?"
He said: "Operating in Zim is always a contradiction for us, because for
the last two decades, we've had a presence there. There's always been policy
uncertainty. We've always had human rights questions. We always have had
elections in which the outcome has been disputed."
"The very interesting thing is it is probably the most stable part of the
group operations. So, for instance, now with the elections, we did not have an
impact at our operations as a consequence of the voting, the election process �
neither the outcome."
Implats,
he says, chooses to be active in the country rather than look from the outside.
"It always remains our position that to be an active player in the country
while operations remain stable is far more favourable than being an observer
from the outside. So, we still have frequent engagements with various parts of
the government, and we continue to attempt to play a positive role and
influence with regards to human rights, policy certainty, and all of those
things that create jurisdictional risk."
Earlier this week, Zimplats announced in its full-year results that it has
spent US$304 million over the past year on new projects. This includes new
mines and additional processing capacity, including work on a base metal
refinery.
However, Zimplats is not sheltered from Zimbabwe's problems. Like much of the
region, Muller says, Zimbabwe's power deficit means the company has to secure
its own energy. It will take "a decade or two" for Southern African
power supply to catch up with demand.
Says Muller: "That's also what's driving our own initiatives towards
establishing a greater supply of renewable energy from independent
sources."
Zimplats has started building a new 185MW solar plant and importing 50MW from
Zambia.
Source: https://bulawayo24.com