KUVIMBA Mining House has redesigned its Darwendale platinum development as an open-pit operation rather than the originally planned underground mine, said Trevor Barnard in an interview with Reuters.
The strategic shift aims to accelerate the long-delayed project amid strengthening platinum prices, he said.
Initially unveiled in September 2014 by former President Robert Mugabe and Russian Foreign Minister Sergey Lavrov, the venture was conceived as a $450m underground operation destined to become Zimbabwe’s largest mining project.
However, the scheme faced severe setbacks in 2022 when Russian partners withdrew and platinum group metal prices plummeted.
Barnard told Reuters Kuvimba had abandoned its “big bang approach” in favour of a more modest $50m open-pit commencement. The company will fund operations through its parent organisation, sovereign wealth fund Mutapa, alongside internal cash generation and limited borrowing, he said.
“It’s extremely challenging to secure $450m specifically for platinum projects in Zimbabwe,” Barnard said, highlighting the revised scope and phasing strategy.
Market analysts suggest rising platinum valuations, fuelled by increased Chinese demand and reduced South African supply, could revitalise previously stalled projects.
Platinum prices surged 36% in the second quarter, with June recording a remarkable 28% monthly gain as speculators entered the market. The metal reached an 11-year peak of $1,432.60 per ounce, marking its strongest monthly performance since 1986.
Fellow operator Tharisa recently indicated plans to expedite its $391m Karo project development following improved commodity conditions.
Kuvimba operates three gold mines that yielded 116,000 ounces during 2024.
