JOHANNESBURG – Impala Platinum, the world's second-largest platinum producer, reported a 66% jump in first-half earnings after a weaker rand bolstered the price it receives for its product.

The company, which lost 33 000 oz of output in the last four months of 2011 because of government-ordered safety stops, is currently struggling with labour woes, which could hit output for the remainder of the year.

South Africa's government has ramped up efforts to reduce accidental deaths in the its mines, which are some of the world's deepest and most dangerous.

The safety drive across the gold and platinum industries has cut output and is a key reason behind a 17 percent spike in spot platinum so far this year.

The company said an illegal strike at its Rustenburg operations which resulted in the firing of over 17 000 workers had cost it 60 000 oz in lost outut as of Feb 14 and the mine remains shut.

This will bite into its production and earnings for the rest of its financial year and has prevented it from taking full advantage of the recent recovery in the platinum price.

Headline earnings were 573c per share for the six months to the end-December, a huge spike from 345c a share in the same period the previous year.

Headline earnings, the main profit gauge in South Africa, strip out certain one-time items.

The platinum price fell during the period, but that was counter-balanced by a sharp decline in the rand which Implats said resulted in exchange gains of R608-million.

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