Zimbabwe’s Mimosa platinum mine is reviving a US$130 million life-extension project following a recovery in platinum group metal prices, as the company seeks to sustain production after the decline of its current mining area.
Mimosa, jointly owned by South Africa’s Impala Platinum and Sibanye Stillwater, suspended the North Hill project in 2024 after platinum prices weakened amid reduced demand, inventory adjustments and concerns over the rapid growth of electric vehicles.
However, prices have since rebounded, supported by tight global supply, particularly from major producer South Africa, and slower-than-expected adoption of electric vehicles.
Mimosa General Manager Stephen Ndiyamba said the company was now reviewing the project internally, with the proposed investment expected to extend the mine’s operational life by about 15 years.
“Currently, we are working internally on consideration of a life-of-mine extension project which will require a capital investment of about US$130 million,” Ndiyamba said during a mining conference in Victoria Falls.
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The project is designed to replace production from Mimosa’s South Hill ore body, which is becoming increasingly depleted and more costly to extract.
Mimosa, Zimbabwe’s second-largest platinum producer after Impala’s Zimplats, currently produces about 250,000 ounces of platinum group metal concentrates annually.
The move reflects a broader shift among platinum producers, who remain cautious about large new investments despite improving prices.
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South Africa, which accounts for roughly 70 percent of global platinum output, has seen miners focus more on extending the life of existing operations rather than developing major new mines.
The sector continues to face long-term uncertainty from the growth of electric vehicles, which do not rely on platinum-based catalytic converters used in traditional combustion-engine vehicles.
Companies including Impala Platinum have therefore favoured projects that preserve existing production capacity while managing future market risks.
Mimosa’s decision to reconsider the North Hill project signals renewed confidence in platinum demand in the short to medium term, while reflecting the industry’s efforts to balance current market opportunities with longer-term challenges.
