JOHANNESBURG (miningweekly.com) – Platinum major Implats has reported 12% lower production, 27% lower refining, 10.8% higher units costs, unresolved indigenisation implementation in Zimbabwe and three deaths.

The platinum production of South Africa’s second-largest platinum miner – headed by CEO David Brown – was down 12% to 388 000 oz in the three months to September 30, compared with 441 000 oz in the corresponding quarter last year.

Refined quarterly production was down 27% to 139 000 oz, compared with 190 000 oz in the same quarter of 2010.

The cost of producing one ounce of platinum rose by 10.8% from the previous quarter a year ago, owing primarily to the impact of the 10% wage settlement and the continuation of high electricity tariff increases.

Implats attributed its lower first-quarter output to reduced volumes through Impala Refining Services from an operationally impacted Crocodile River mine, the closure of the Blue Ridge mine, as well as last year’s 34 000 oz toll treated by Lonmin being a 2010 once-off.

More material from surface dumps and dams is being treated in order to minimise production loss in the current quarter to December 31.

Palladium production also decreased 12%, but rhodium by only 7% owing to a stock build-up in the corresponding period a year ago.

Although 6% fewer tons – 3.76-million – were milled at the Impala Rustenburg mine, platinum production at the flagship operation remained flat at 249 000 oz owing to the 50:50 Merensky/upper group two ore mix and the treatment of additional surface material.

As a result of restructuring at the Marula mine, tons milled declined by 10% to 395 000 oz and platinum in concentrate fell by 12% to 18 000 oz.

The temporary restructuring-related change to a five-day milling cycle resulted in the build up of a surface stockpile at Marula, where costs have reportedly begun to fall in line with operational right sizing.

An increase in tons milled to 1.06-million resulted in platinum production in matte being marginally up to 45 000 oz at the Zimplats mine in Zimbabwe, where the second phase of an expansion is on schedule to increase platinum production to 270 000 oz by the start of the 2014 financial year.

Blasting and construction of tunnel arches are under way in Zimplats’ portal three north and south declines.

Zimplats management remains in negotiation with the Zimbabwe government to finalise the indigenisation implementation plan, which will be resubmitted imminently.

Production was flat in line with steady-state production of 100 000 oz/y of platinum in concentrate at the Mimosa mine in Zimbabwe, which is also awaiting government feedback on its indigenisation plan.

Three employees lost their lives at work at Impala Rustenburg, Phakani Joseph Tshabangu and Monyamane Molotha in two separate falls-of-ground and Christian Sinikiwe Dweba as the result of drilling into a misfire.

Production lost due to safety stoppages in the quarter totalled 8 000 oz of platinum, and a similar safety-stoppage-related amount has already been lost in the current quarter.
 

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