Junior miner Eastern Platinum (Eastplats) has reported lower third-quarter production at its Crocodile River Mine (CRM) owing to labour problems at the South African mine.

CRM’s production fell by 10% in the third quarter, to 29 874 oz of platinum-group metals (PGMs), compared with the second quarter’s production, and by 3%, compared with figures for the corresponding period in the previous year.

Eastplats president and CEO Ian Rozier attributed the weaker production figures to the termination of contract mining companies, the employees of which were involved in an illegal strike at CRM in July, as well as the subsequent direct employment of mineworkers and the reinstatement of a limited number of contract employees.

However, with the introduction of new crews to the mine this quarter, a milestone of two-million fatality-free shifts was achieved at CRM in September, Rozier said in a statement.

During the quarter, stoping and development output was significantly reduced and, by September, production levels had returned to those achieved in June 2009. Run-of-Mine Circuit Concentrator recovery from the run-of-mine circuit decreased to 78% during the quarter mainly as a result of suboptimal operation during times of low feed from underground.

This was expected to return to 80% as mining rates ramped back to prestrike levels.

This quarter also marked the first full quarter of production from the tailings remining section, which extracts PGMs and chromite from previously placed tailings.

“After a disruptive period in July and early August at CRM, we have recovered extremely well, the extensive on- and off-reef development carried out during the last year having positioned the mine well for both the short-term production ramp-up back to second quarter levels, and for the ongoing production build-up at the mine,” stated Rozier.

Going forward, Rozier noted that development would be maintained at second-quarter levels in order to sustain the 18-month mining reserve that had been built up at the mine over the past two years.

Eastplats is listed on the JSE, the TSX and Aim.

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