JOHANNESBURG (miningweekly.com) – Enforced government stoppages that were not linked to any mine fatality have denied Anglo American Platinum (Amplats) 109 000 oz of platinum.

The 81 Section 54 stoppages, which brought wide areas of the JSE-listed company’s production to a standstill in 2011, lasted much longer than ever previously experienced, Amplats CEO Neville Nicolau said on Monday (see also accompanying Mining Weekly Online video).

Moreover, although the stoppages were meant to increase safety, Nicolau contended that in practice there was a danger of the reverse being true.

This was because regular, sudden and unplanned operational stoppages of underground mines significantly increased safety risk.

“We support the concept of Section 54 stoppages but they do need some further explanation,” Nicolau added.

During the year, the 81 stoppages issued to the company’s directly owned mines were 2.5 times more than in 2010.

Of the 138 000 oz lost at own mines, more than 100 000 oz were lost without any miner having died.

If Amplats included its share of joint venture and associate production, it lost more than 164 000 oz of platinum owing to safety stoppages, with 109 000 oz the result of nonfatal Section 54 stoppages.

Most of the 61 000 fewer ounces that its joint venture and associate mines produced were stoppage-induced.

Had the government not enforced the nonfatal stoppages, Amplats’ own mines would have been able to beat 2010 output. Even against all the stoppage odds, the start-up at Unki in Zimbabwe and Mogalakwena’s improved results allowed own-mine production to match 2010’s 1.56-million ounces.

But as it turned out, Amplats was able to achieve only 2.41-million ounces of equivalent refined platinum, a 3% year-on-year decrease.

Refined platinum at 2.53-million ounces was also 2% down but refined 2011 platinum sales totalled the promised 2.6-million ounces.
 

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