(Adds quotes, smelter plans)
By MacDonald Dzirutwe
HARARE, Aug 19 (Reuters) - Anglo American Platinum's Zimbabwe unit Unki said on Wednesday it was consideringeither building a new smelter or expanding facilities at largerrival Zimplats.
President Robert Mugabe's government last week suspended a15 percent tax on raw platinum exports after mining companiescommitted to building smelters and refineries.
"These efforts are part of the solution agreed with thegovernment which have resulted in the suspension of the 15percent tax," Colin Chibafa, Unki Mines chief financial officersaid in emailed responses to questions from Reuters.
Unki is the smallest of three platinum mines in Zimbabwe andhas previously said it would take two years to build a smelter.
Mines in Zimbabwe send platinum group metal concentrates forrefining to South Africa but the government wants the process tobe done locally to increase the value of mineral exports.
Platinum was the largest mineral export in Zimbabwe lastyear, and the southern African nation holds the world'ssecond-largest reserves of platinum which can be used incatalytic convertors or for making jewellery.
Chibafa said the company was considering "a green fieldssmelter at Unki using some of the equipment that Anglo AmericanPlatinum Limited has available."
The equipment was initially set for constructing otherfurnace projects at Amplats mines in South Africa, he said.
Chibafa said Unki was also looking at the possibility ofexpanding the smelter facilities at rival Zimplats, Zimbabwe'slargest platinum mine, which is majority-owned by ImpalaPlatinum Holdings.
The second plan would also see the Zimplats smelterprocessing platinum from Mimosa Mines, a 50-50 joint venturebetween Implats and Aquarius Platinum Ltd.
Zimplats' officials were not available to comment.
Unki was likely to finalise the cost for both options by theend of October, Chibafa said.
The company said a plan to upgrade two furnaces owned by twoferrochrome producers in Zimbabwe for smelting PGMs wasdiscarded because it was costly.
Unki's platinum output rose 6 percent to 32,000 ounces inthe half-year to June, from the previous year.
The company resumed exports last month after suspending themon April 10, following the introduction of the platinum tax. (Editing by James Macharia and Keith Weir)