1. ZIMASSET AWARENESS SEMINAR FOR MEMBERS OF THE PARLIAMENT OF ZIMBABWE 12 - 13 MARCH 2014

2. AS ZIMASSET TAKES OFF, SO DOES VALUE ADDITION

3. PLATINUM GROUP METALS Platinum Group Metals (PGMs) Platinum Rhodium Paladium Ruthenium Iridium Osmium PGMs exist in association with other Metals Gold Copper Cobalt Nickel Silver

4. The Great Dyke of Zimbabwe: Sitting on Gold!!!

5. THE GREAT DYKE The Great Dyke is a mineral rich natural occurrence running from SSW to NNE in the central part of Zimbabwe for 550km, Its width varies from 3km to 12km. It is hosts the second largest deposit of PGMs in the world after RSA The Dyke also hosts the largest known high grade chromite deposit in the world GREAT DYKE

6. GEOLOGY OF THE DYKE The Dyke consists of 5 sub- chambers each with a shallow synclinal structure. Within these sub-chambers is a layer known as the Main Sulphide Zone (MSZ) The MSZ is a 1 – 2.5m thick layer enriched in sulphide minerals. It contains economic concentrations of all six platinum metals (PGM)

7. World Ranking The platinum resources in the Great Dyke are second in the world only to those of the Bushveld Igneous Complex of South Africa. The Great Dyke of Zimbabwe is unique in that the MSZ outcrops on some parts and near surface making platinum mining on the dyke a low cost production, compared to other leading platinum operations

8. THE MAIN PRODUCERS IN ZIMBABWE COMPANYCURRENT CAPACITY (Pt Oz /YR) ZIMPLATS270 000 MIMOSA110 000 UNKI60 000 TOTAL440 000 ZMDC is still at various stages of development in JV arrangements with its partners

9. Platinum Mining Mechanised Underground Mining Method is employed for extraction of ore. ZIMPLATS, Mimosa and Unki employ the bord and pillar mining method is employed to extract the ore. All have invested heavily in mining equipment that include drilling jumbos, Load Haul Dump trucks, underground dump trucks and conveyor belt systems.

10. RESERVES AND RESOURCES UNKI MINE AS AT DECEMBER 2012 Million tonnes 4E g/t 4E Million Troy Oz Reserves Total53.703.766.5 ResourcesTotal186.204.3526.0

11. RESERVES AND RESOURCES MIMOSA AND ZIMPLATS AS AT 30 JUNE 2013 RESOURCES Tonnes MtMillion Pt Oz ZIMPLATS & MIMOSA1879.999.4 RESERVES Tonnes (Mt) Million Pt Oz ZIMPLATS & MIMOSA 264.613.8

13. BENEFICIATION

14. Milling

15. Flotation Process to Upgrade PGMs The PGMs and Base Metals are floated using specialised reagents

16. Concentrate & Quality Control & Metal Accounting

17. Beneficiation

18. BENEFICIATION Currently Unki and MIMOSA produce concentrates which are transported by road to RSA for Smelting and further beneficiation ZIMPLATS smelts its concentrates to produce converter matte, is sent to South Africa for base metal refining to recover Nickel, Copper and Cobalt and precious metal refining to recover the 6 PGMs as well as Gold and Silver. There is need to have a Base Metal Refinery and Precious Metal Refinery in Zimbabwe…..an accepted Policy position

19. UNKI & MIMOSA BENEFICIATION

20. ZIMPLATS BENEFICIATION

21. ZIMBABWE’S COSTS COMPETITIVENESS 2013 Typical Production costs comparison: Impala platinum Mine MineCost/tonne Milled ($) Cost per PGM Oz in Matte ($) Cost per Platinum Oz in Matte ($) ZIMPLATS (Zimbabwe) 556221307 Marula (South Africa) 988492230 The Zimbabwean PGM mines are relatively shallow (200metres VS 2km deep), low- cost operations run by a small, skilled and less militant workforce. The industrial relations climate in Zimbabwe makes it more conducive to operate a mine in the country than in South Africa.

22. WORLD PLATINUM PRODUCTION World Supply of Platinum, including recycling (2012) COUNTRYOUNCES South Africa4,095 Russia800 Zimbabwe340 Others405 Recycling2,030 Total7,670

23. WORLD PLATINUM PRODUCTION World Supply of Platinum, excluding recycling (2012) CountryOunces South Africa4,095 Russia800 Zimbabwe340 Others405 Total5,640

24. © Rowan Gibson HOW DO WE GET WHERE WE WANT TO GO???

25. Potential for Further Beneficiation and Value Addition in Zimbabwe The case for Base Metal and Precious Metal refining in Zimbabwe is overwhelming, especially given the vast PGM resources in the country. As production capacity continues to increase, the capacity of the refineries in South Africa will be saturated. The potential employment and downstream economic benefits also favour development of beneficiation facilities in Zimbabwe.

26. Potential for Further Beneficiation and Value Addition in Zimbabwe For Base Metal Refining, available facilities are; Empress Nickel Refinery (RIOZIM) Makwiro (ZIMPLATS), using the mothballed BMR plant, Bindura Nickel (Mwana Africa) Alaska (ZMDC) or construction of a new BMR. For Precious Metals, it is necessary to construct a Precious Metal Refinery for the recovery of PGMs, Gold and Silver. Expansion should be synchronized with power supply expansion (100MW)

27. VALUE ADDITION DENTAL EQUIPMENT AUTO CATALYST JEWELLERY PLATINUM INVESTMENTS

28. VALUE ADDITION GOLD ELECTRONICS JEWELLERY INVESTMENT GOLD COINS

29. VALUE ADDITION COPPER COPPER CABLE

30. VALUE ADDITION NICKEL STAINLESS STEEL

31. VALUE ADDITION OFF-GAS FERTILIZER CHEMICALS

32. WORLD PLATINUM PRICES VALUE ADDITION CUSHIONS PRODUCING COUNTRIES FROM PRICE FLUCTUATIONS

33. CONCLUSIONS The Great Dyke hosts the world's second largest known PGM resources after the Bushveld complex of South Africa The Main Sulphide Zone which hosts the PGMs and Base Metals is shallow, hence mining can be done at relatively low cost in comparison with other leading Platinum operations on the production cost curve. The operating Mines carry out limited beneficiation stages in the country – and Government has pushed for more beneficiation and value addition

34. CONCLUSIONS In line with the Government's ZIMASSET economic blueprint, it is required that beneficiation and value addition of PGMs and other minerals be carried out in the country. Smelting, Base Metal Refining and Precious Metal Refining and further Value Addition should be undertaken within the country. About $1-$2 billion investment is required to put up the necessary processing plants, support infrastructure and increase power generation.

35. CONCLUSIONS This could be facilitated by Government Policy and legislation which : creates a stable and predictable investment climate provides investment incentives Promotes development of skills encourages skilled Zimbabweans living in the diaspora to return attracts specialist skills that are in short supply in the country promotes research and technology development The socio-economic benefits of such investment and development include increased revenue inflows, industrialisation and employment levels.

36. © Rowan Gibson WE ALSO NEED A TEAM OF EXPERTS TO ADVISE & WORK ON THIS SPECIAL PROJECT

37. Thank you for listening!!!!!!!!