JOHANNESBURG (miningweekly.com) – JSE-listed platinum-miner Impala Platinum (Implats) lifted its first-quarter output by 6% to 413 000 oz, the group said on Friday, but warned that full-year production from its flagship Impala lease area could fall by as much as 100 000 oz.

The company attributed the group's improved September quarter platinum production to higher output from the Zimbabwean operations, increased deliveries to Impala Refining Services (IRS) and changes in the pipeline, as stocks were cleared during the strike action.

Palladium and rhodium rose by 22% and 20% respectively, during the three-month period.

At the Implats lease area, the tons milled declined by 26% to just under three-million, owing to the closure of all mechanised sections following an accident at the 14 Shaft, at the Rustenburg operations, and the two-week strike during September.

As a result, platinum production declined by similar levels with the loss of 25 000 oz from the safety stoppages and a further 50 000 oz owing to the industrial action. The change in the mining layout in the mechanised sections would further impact on production in the current year by another 25 000 oz, Implats warned.

The closure of the mechanised sections impacted Merensky Reef production, which fell by 17% to 39% of throughput. Despite this, the overall grade at the operation improved as a result of the focus on quality mining. On-reef development continued to receive the attention of the operational team.

Implats said in a statement that as a result of the 14 Shaft incident and the strike, production for 2010 financial year was expected to be down by 100 000 oz of platinum to 850 000 oz.

Yearly production of one-million ounces of platinum would be achieved within the next five years.

The lower production volumes would also adversely impact unit costs during the first half of the current year, the miner stated.

Further, Implats reported that strike action at Marula had impacted on production, resulting in a loss of 2 000 oz of platinum. It was expected that this mine would deliver about 85 000 oz of platinum in concentrate in the current financial year and 100 000 oz in 2011.

At Zimplats mill, tonnage increased by 67% in line with the ramp-up of production from the Phase 1 expansion project.

The Ngezi concentrator was successfully commissioned in late July and reached design throughput by the end of September. The development of the Portal 4 underground mine also remained on schedule to reach full production by mid-2011. In the interim period ore would be sourced from the surface ore stockpile.

Platinum production in matte rose by 113% year-on-year to 36 000 oz owing to the ramp-up and the fact that output in the previous period a year ago was impacted by a smelter shutdown.

Production in 2010 was expected to reach 170 000 oz of platinum in matte with full yearly production of 180 000 oz being achieved in the following year.

The platinum producer stated that at the commissioning of the Wedza Phase 5 expansion at Mimosa, which entailed the extension of milling and tailings-handling capacity was completed. This resulted in a 12% increase in tons milled and a concomitant increase in platinum in concentrate production to 26 000 oz.

The mine was now operating at steady-state capacity of 100 000 oz of platinum in concentrate a year.

The IRS’ refined platinum production, which included material from Marula, Zimplats and Mimosa, rose by 59% to 233 000 oz quarter-on-quarter. This was largely owing to increased receipts, particularly from the Zimbabwean operations, Two Rivers, Blue Ridge and Smokey Hills and pipeline movements.

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