JOHANNESBURG (miningweekly.com) – The world’s third-biggest platinum-miner Lonmin reported on Thursday that first-quarter platinum sales fell by 13,6% as refined production declined by 16,7%.

The company, which operates mines in South Africa, produced 110 786 oz of refined platinum in the quarter.

Lonmin said platinum sales declined to 109 044 oz, while sales of total platinum group metals increased by 4,8% to 239 685 oz.

Despite weaker December-quarter sales, the group reiterated its 2010 sales guidance of 700 000 oz of platinum.

Production from its Marikana operations, in the North West province, had declined by 3,9% to 2,9-million tons, during the first quarter of 2010.

Lonmin explained that safety stoppages and the closure of an uneconomic decline shaft and a number of half levels at had impacted on first-quarter output at the operation.

The group said that production at Saffy and Hossy shafts performed well, delivering a combined tonnage increase of 46% from the prior year period, while the Pandora underground production increased slightly during the first quarter of 2010 from the prior year period.

Total tons milled for the quarter declined by 15,6% from the first quarter of 2009 to 2,6-million tons. However, total metals in concentrate production declined by just 6,6% to 161 845 saleable ounces of platinum, with metals-in-concentrate production from the Marikana operations remaining flat at 156 025 saleable ounces of platinum. Lonmin stated that this was owing to improvements in grade and concentrator recoveries during the first quarter of 2010.

“It should also be noted that the performance in quarter one last year was impacted by an intensive maintenance programme, which reduced recoveries,” the company pointed out.

“The improvements in grade and recoveries are pleasing. However, we need to see these sustained before being confident that we have made a step change in our performance,” Lonmin added.