JOHANNESBURG (miningweekly.com) – Platinum-group metals (PGMs) exploration and development company Platmin reported on Monday that metal output at its Pilanesberg platinum mine (PPM) was starting to recover following intensive efforts to improve industrial relations at the operation, which descended into a riot on June 23 with further strike action experienced during July.

CEO Tom Dale said daily metal production targets were being met consistently when ore was delivered to the concentrator. But achieving metal production forecasts would depend materially on the ability to deliver planned volumes of waste and ore.

He said that haul capacity being brought to site during the fourth quarter of the current financial year would help address the prevailing constraints in this regard.

But industrial relations also remained a key focus area. The company had endured serious disruptions and intimidation of supervisors, while property and mining equipment belonging to mining contractor MCC had also been damaged during the year.

“Good progress was made with the separation of responsibilities and reporting structures for drilling, blasting and load/haul at the mine. However, we need the full support of the workforce to achieve our objectives,” Dale said, adding that industrial relations interventions by external professionals were expediting the recovery.

For the quarter to September 30 the company reported production of 13 640 oz compared with 13 788 oz of PGMs in the corresponding period of 2010. But more than 6 000 oz were dispatched in September, which demonstrated the effects of the June 23 riot. Sales revenue for the quarter of $22.6-million was down from the June quarter’s $34.5-million.

The company spent about $1.6-million (R11.4-million) on exploration of various Pilanesberg exploration projects, taking the total exploration expenditure since the inception of the Pilanesberg exploration projects to $7.8-million (R62.3-million).

The Pilanesberg exploration projects consisted of properties adjacent to PPM, including Sedibelo West. The focus was on advancing earlier stage properties, through programmes of soil sampling, trenching, percussion drilling and ultimately diamond drilling.

Meanwhile, the TSX- and JSE-listed junior posted a profit for the quarter of $7.4-million compared with a loss of R26-million in the corresponding period last year. For the nine months ending September 30, it reported a loss of $50.5-million compared with 2010’s $55.2-million.
 

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