JOHANNESBURG (miningweekly.com) – Mining major Anglo American Platinum (Amplats) has maintained its full-year production guidance of 2.3-million platinum ounces, despite experiencing industrial action at its operations in Rustenburg and north of the Pilanesburg in September.

“Despite losing 44 000 oz of production over this period, our short- to medium-term forecast production will remain at between 2.2-million ounces and 2.4-million ounces,” the company said in its third-quarter results statement on Friday.

However, the miner cautioned that, despite its cash operating costs of R17 381/oz for the third quarter remaining in line with full-year guidance of R17 000/oz, this would likely be negatively impacted in the fourth quarter by the planned restructuring, industrial action and the outcome of the wage negotiations.

Total group platinum production for the three months ended September 30, was flat at 623 000 oz, compared with the 626 000 oz produced in the third quarter of 2012, while production was up 5% quarter-on-quarter on the 595 000 oz produced in the quarter ended June 30.

Production from Amplats’ own operations, including the Western Limb Tailings Retreatment plant, was 406 000 oz – down 20 000 oz or 5% year-on-year, amid planned mine closures and the associated challenges in redeploying staff to mines with labour shortages.

In contrast, year-on-year increases in production were recorded at the Khuseleka 1 shaft and at the Thembelani, Unki and Mogalakwena mines, but were offset by lower production from the Bathopele, Tumela and Dishaba mines. 

Production was suspended at the Khomanani mine, the Khuseleka 2 shaft and the Union North Decline in August, in line with the proposed restructuring plans, with the resources from these mines to be integrated into the surrounding operations.

Platinum production at the Rustenburg mines was 132 000 oz, down 11% year-on-year and 13% quarter-on-quarter as a result.

Production from Bathopele decreased 18% year-on-year, as production was impacted by a double loss of life incident in July. “Mine production at Bathopele is, however, recovering and increasing steadily,” Amplats noted. 

Platinum production at the Tumela and Dishaba mines decreased by 10% owing to shortages of production crews and supervisors and Section 54 safety stoppages. Tumela was further affected by a loss of life incident in August.

In addition, Mogalakwena production was 20% higher year-on-year as a result of higher milled volume and improved concentrator recovery, while production at Unki increased 13% year-on-year to 17 000 oz as underground mining volumes increased.

Production from the Twickenham mine had improved, with production increasing 107% to 3 100 oz, compared with the prior year’s third quarter. 

Moreover, equivalent refined platinum production from joint ventures (JVs) and associates, inclusive of both mined and purchased production, was up 9% year-on-year at 199 000 oz, which was a record quarterly performance of the JV portfolio, excluding Marikana.

“This was owing to higher production volumes at Bokoni (up 27%), Mototolo (up 16%) and Kroondal (up 14%) as a result of productivity improvement initiatives,” said the miner.

The record production was despite mill maintenance at Kroondal and an extended shutdown of the Bafokeng-Rasimone platinum mine mill to replace the primary mill discharge end.

Equivalent refined platinum ounces purchased from third parties were flat year-on-year at 17 000 oz.

Meanwhile, refined platinum production at 666 000 oz, increased by 3% year-on-year and by 14% quarter-on-quarter, primarily owing to improved performance at the Anglo American Platinum Converting Process (ACP) plant, which was operating at a steady-state level after issues were resolved at the end of the second quarter. 

Refined production of palladium and rhodium decreased by 6% each.

Palladium and rhodium variances were the result of a different source mix from operations and different pipeline processing times for each metal, while nickel production saw a 44% quarter-on-quarter increase as the technical challenges in the new nickel tank house were resolved and ramp-up continued.

Amplats reported that the redeployment programme of labour following the placement of mines on care and maintenance was under way and was expected to yield benefits from the fourth quarter.