Zimbabwe Platinum Mines (Zimplats) said it invested a total US$1 billion into Zimbabwe since it started operations in the country nine years ago.

David Brown, Zimplats chairman---who is also Chief Executive Officer (CEO) of its 87% shareholder Impala Platinum said the figure had been reached after the board approved to go ahead with the Ngezi Phase 2 expansion project

“It is worth noting that, including the planned Ngezi Phase II expansion investment, Zimplats will have invested US$1 billion in the 9 years that the company has been in operation, making it, by a significant margin, the biggest investor in Zimbabwe,” said Brown in the company’s annual report released today (Thursday).

Zimplats CEO Alex Mhembere, however said the $450 million expansion project was likely to cost $10 million more than originally projected due to the exchange rate movement of the Rand.

“The final project cost is expected to be higher than budget by $10 million due mainly to the impact of the stronger than anticipated South African Rand exchange rate against other major currencies,” said Mhembere.

He said the platinum producer expected the mine expansion to be completed by next as part of its plans to bring its annual production to one million ounces a year.

“This is the second stage in a series of planned expansions to grow the business with the ultimate objective of achieving annual production of 1 million ounces of platinum per year.”

Mhembere said the continued investment into its mining operations had considerably reduced its production cost to levels were its operations could withstand shift in global metal prices.

“Zimplats is now among the lowest cost PGM producers in the world and is thus better positioned to withstand possible metal price slumps of the magnitude witnessed in 2008,”

In the period under review Zimplats posted a $122 million profit for the year through June compared with a loss of $25 million a year earlier.