Platinum producer Lonmin reports a 71% decline in tonnes lost as a result of Section 54 safety stoppages in the three months to December 31, 2016.

In its unaudited production results for the first quarter of 2017, Lonmin highlights that its safety strategy remains centred on the belief that zero harm is achievable and that important contributions are required from all stakeholders to achieve this.

During this period, the company’s Saffy shaft achieved four-million fatality-free shifts on December 14, 2016, its Newman shaft achieved three-million fatality-free shifts on October 28, 2016, and its Rowland shaft exceeded one-million fatality-free shifts on January 13. All these shafts are located at Lonmin’s Marikana platinum mine, in Rustenburg. Further, its Precious Metal Refinery, in Johannesburg, recorded one year without a lost-time injury as of December 30, 2016, as well as one year without the need for medical treatment as of October 27, 2016.

Regrettably, at the Marikana E1 shaft production team leader Joao Fernando Macamo was fatally injured following a tramming incident on November 10, 2016. Lonmin adds that it is addressing the root causes of safety incidents and ensuring that the lessons learnt from each incident are implemented and shared across operations.

Lonmin cites that its Marikana mining operations, in Rustenburg, including Pandora, produced 2.3-million tonnes during the fourth quarter, down 7.8%, or 0.2-million tonnes, on the comparative period, partly owing to the planned decline from the closing of its high-cost shafts. “While the first quarter of Lonmin’s financial year is, historically, Marikana’s lowest-producing quarter, the project’s performance during the fourth quarter was disappointing with production at the Marikana Generation 2 shafts down 5.2% from the prior year period.

“The implementation of initiatives to improve productivity is taking longer than we planned, particularly in respect of improving absenteeism; however, we remain committed to delivering sustained productivity improvements at our operations to ensure the long-term viability of the business,” states Lonmin.

The company’s Generation 2 shafts yielded 1.8-million tonnes during the fourth quarter, a decrease of 5.2%, or 0.1-million tonnes, on the comparative period as Lonmin’s biggest shaft’s – K3 – underperformance predominantly weighed down the overall performance.

K3 produced 590 000 t, a disappointing decrease of 13.8% on the prior period. This shaft was most impacted by the reorganisation of reskilled and redeployed employees and, during the quarter, experienced high management-induced safety stoppages, resulting in 60 000 t of lost production.

The company adds that, overall, the relationship between operational management and unions at this shaft is not working as effectively as it expected and the yielding of results from the implementation of business improvement initiatives at this shaft is taking longer than it would have liked to see. As a result, Lonmin is deploying additional stoping and vamping crews to the shaft to take advantage of the immediately available ore reserves and improve production. “This may have an adverse impact on the shaft head cost per tonne which we would seek to mitigate by further reducing our overhead costs.”

Platinum-group metals producer Anglo American Platinum (Amplats) also released its production report for the fourth quarter of last year, which details one fatality at its Union mine, in Rustenburg, and strong operational performance, refined platinum production and sales volumes.

The one loss of life, owing to a work-related incident during the fourth quarter of 2016, was that of Peter Lesholla, who was fatally injured in a conveyer belt incident on September 24, 2016. The company notes that an independent and comprehensive investigation into this fatal incident is under way to understand the circumstances of and learn from this fatal incident to create a safer work environment for all.

Amplats’ total platinum production (metal-in-concentrate) was up 2% to 610 100 oz as a result of improved performance during the quarter under review at Mogalakwena, in Limpopo, Unki, in Zimbabwe, and at its joint venture operations, Kroondal, in Rustenburg, and Bafokeng Rasimone Platinum Mine, in Limpopo.

Twickenham, in Limpopo, was on care and maintenance in the second half of 2016, which led to a reduction of 4 200 unprofitable platinum ounces in the fourth quarter of 2016.

Mogalakwena production increased by 5% to 103 400 oz driven primarily by a 2% increase in grade to 3.1 g/t. Rustenburg-based Amandelbult’s production was constant at 121 100 oz, while Unki’s production climbed 7% to 19 900 oz, owing to increased tonnes milled and a higher grade.

Following the restructuring at Union in 2016, which led to a significant reduction in labour, the mine continued to perform in line with its optimised mine plan, despite the impact of the fatality, maintaining production at 38 100 oz. Total mined production from Amplats’ Rustenburg Operations, including Western Limb Tailings Retreatment, increased 9% year-on-year and 7% on the third quarter of 2016, reflecting a quarter of production not impacted on by safety issues.

The R4.5-billion sale of Rustenburg Operations to Sibanye was completed on November 1, 2016, and from this date its production was recognised as third-party purchase of concentrate and excluded from Amplats’ own production. Rustenburg Operations’ own mine production, therefore, decreased by 62%, which is a result of only one month of production in the fourth quarter of 2016.

Integrated PGM producer Northam Platinum is expected to release its interim results for the six months ended December 31, 2016, on February 24.