Model holiday-working labour puts RBPlat on productivity high
Royal Bafokeng Platinum (RBPlat) CEO Steve Phiri and RBPlat COO Nico Muller outline to Mining Weekly Online’s Martin Creamer how the company’s labour force, which have proved a model of stability in Rustenburg’s strike-prone platinum belt, have committed to aligning with operational needs, which includes working on public holidays. Video: Nicholas Boyd. Video Editing. Lionel da Silva. Martin Creamer
JOHANNESBURG (miningweekly.com) – The labour force at black-owned and black-controlled Royal Bafokeng Platinum (RBPlat), which was a model of stability during the wave of worker unrest that swept through Rustenburg’s troubled platinum belt, put productivity on a new high in the six months to June 30 despite the worst strike in South African history taking place on its doorstep.
With RBPlat's 6 213 non-striking employees having constantly to look over their shoulders, the general unease did result in a spate of accidents during the first month of the violent five-month strike, when the injury rates rose by up to 11% early at RBPlat’s Bafokeng Rasimone Platinum Mine (BRPM).
But the National Union of Mineworkers- (NUM-) dominant labour force managed to knuckle under and take the company, headed by CEO Steve Phiri, to new levels of productivity.
“Labour aligned with operational requirements,” RBPlat COO Nico Muller said at Tuesday’s presentation of results, which saw headline earnings a share soar 33% to 116c a share, revenue rise 18% to R1.8-billion and production increase 3% to 134 229 platinum group metal (PGM) ounces. (Also watch attached video).
The company’s workforce put in a stint that saw BRPM’s overall labour productivity improve 3% to 31.0 t per total employee costed and stoping efficiencies rise 5% to 325 m2 per crew.
Muller attributed the productivity improvements to operational continuity and flexibility “but also the result of working arrangements on most public holidays during the second quarter, thanks to the support of our unions and our employees”.
Phiri told querying mining analysts that there was no science to the creation of cordial labour relations, which have contrasted so markedly with those of peer companies suffering a prolonged five-month work stoppage.
“It’s a matter of how people choose to cooperate and an approach of mutual respect,” Phiri added.
On volunteering to work on public holidays, NUM branch chairperson Papi Moteti commented to Mining Weekly Online that many mineworkers from especially those distant neighbouring States appreciate the chance to earn extra cash by working on public holidays and helping the company to meet its production targets at the same time.
Taking out his cellphone, a smiling Moteti showed Mining Weekly Online a picture of rows and rows of brand new houses that RBPlat had built for its mineworkers as part of a home-ownership plan and reiterated his conviction that mineworkers should live at the mine with their families.
Earlier, RBPlat CFO Martin Prinsloo had said in response to mining analysts queries that the company would be investing R2.8-billion in additional housing, together with its joint venture (JV) partner Anglo American Platinum (Amplats) in the next five years.
RBPlat's good relations with its workers may be a positive factor in any move by the company to consolidate platinum assets in the Rustenburg platinum belt, where JV partner Amplats is currently disposing of mines that no longer fit its strategy.
Pressed by the media on whether RBPlats was bidding for the Amplats assets, an amused Phiri responded that, "when your neighbour's house is for sale, it doesn't hurt to take a look", before pointing to Prinsloo and saying in a more serious tone that the CFO was looking into possibilities.
The cash on hand of the JSE-listed company, in which the Bafokeng community of the North West is the main shareholder, was a solid R2.2-billion to June 30.
Cost challenges included a 7.2% increase in cash operating cost a ton to R983/t and an 8.5% increase in cash operating cost per four-element ounce to R8 288.
The 6.3% increase in serious injury frequency rate to 0.34 was a disappointment.
The company’s vision and mission is to deliver the good from mining and to leave a lasting legacy of sustainable benefits for stakeholders.
The company cites its most important half-year outcome as the three-year wage agreement it signed without industrial action.
Business continuity contributed to a relatively steady production environment and ounce output compared to the corresponding period last year.
A 15.6% improvement in the PGM basket price contributed to the 33% earnings-per-share surge.
Overall progress of the mining and construction portion of the Styldrift I project ended the reporting period at 46.6%, which is 0.4% behind the planned progress.
Constraints associated with the principal shaft sinking and development contractor and delays related to the loading box cutting below 708 level at the main shaft impacted negatively on the project critical path, which ended the reporting period 26 days behind schedule.
Expenditure was well below budget.
Total tons milled at BRPM increased by 4.1% mainly as a result of a 51 000 t (25.6%) increase in upper group two (UG2) production.
Merensky reef head grade of 4.25 g/t was maintained at similar levels to those in the first half of 2013, which combined with the 4.1% increase in tons milled yielded a 3% increase in PGM output to 134 000 oz and a 2.1% increase in platinum-ounce output over the reporting period.
The increase in UG2 mining resulted in an increase in toll concentrating volumes from 89 900 t to 170 300 t.
The BRPM concentrator recovery of 86.97% was in line with the previous performance of 86.98%.
Surface stocks have increased by 26 800 t or 3 200 oz since the start of the year.
The successful mining of the UG2 general facies remains a strategic element of the long-term mining plan at BRPM.
Trial mining of the UG2 at the South shaft delivered steadily improving results with grades peaking at 3.65 g/t in June.
RBPlat’s strategy at BRPM remains to maximise Merensky production and supplement this production with the UG2 reef to increase operational flexibility.
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