JOHANNESBURG (miningweekly.com) – Output at ASX-listed Platinum Australia’s Smokey Hills project, on the eastern limb of South Africa’s Bushveld Complex, dropped sharply in the March quarter, the company reported on Friday.

The processing plant at Smokey Hills produced 8 300 oz of four-element (4E) platinum-group metals (PGMs), which was 24% lower than the 10 318 oz of 4E PGMs produced in the previous quarter.

The platinum miner reported that underground production at the mine had dropped to 72 238 t for the quarter ended March 31, 2010.

Workers of the mining contractor at Smokey Hills, Redpath Mining, embarked on an unprotected strike on March 3, bringing underground mining to a halt.

After nearly a week of strike action, the workers returned on March 10, after having been dismissed and having appealed their dismissal.

However, a full week of production, as well as 50% of the output for a second week, had been lost.

Further, given that 10% of the workforce had not been reinstated, production for the remainder of March had also been impacted on to some extent.

Platinum Australia expected the mine to reach its full employee complement by the end of April.

Meanwhile, the platinum miner noted that a power interruption at Smokey Hills had cost it a further 1 000 oz, after the main control panel at the mine had been damaged by a direct lightning strike at the end of January. This had been fixed by February 1.

Further impacting on its output, had been the continuing impact of a pot hole.

Changes to the mine design to compensate for the effects of the pot hole were expected to be implemented by June, stated the company.

KALAHARI PROJECT

Meanwhile, Platinum Australia said that it was awaiting information from third parties on power and water supply for its Kalahari Platinum project before it could complete a definitive feasibility study (DFS) for the project.

It expected to complete the DFS during the quarter to end June 30, 2010.

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