JOHANNESBURG (miningweekly.com) – Apart from the period in which Anglo American Platinum (Amplats) was impacted by strike action by the Association of Mineworkers and Construction Union, the group said in an update on Tuesday that it had improved the underlying operational performance of key assets in 2014.
Following what it described as “a quick and successful ramp-up” following the strike, which ended in June, it expected to deliver 1.8-million platinum ounces for the 2014 financial year – the upper end of the yearly guidance of between 1.75-million ounces and 1.8-million ounces provided in the third quarter.
Production guidance would likely increase to between 2.3-million and 2.4-million platinum ounces in 2015, between 2.4-million and 2.5-million platinum ounces in 2016 and between 2.5-million ounces and 2.6-million platinum ounces in 2017.
“This is primarily owing to the start of production from Styldrift, the joint venture with Royal Bafokeng Platinum, an expected increase in purchase of concentrate from third-party projects and productivity improvements at our own productions,” Amplats stated.
Operational performance at the Mogalakwena mine, in Limpopo, remained a highlight, with the business improvement plans delivering “sterling” results.
Average daily tons mined at the operation in the fourth quarter of the year increased by 79% on the first quarter to 297 t.
“As a result, Mogalakwena should meet production guidance of 350 000 oz for the year, including 20 000 oz of production from the nearby Baobab,” noted Amplats.
The repositioning of the portfolio, meanwhile, remained ongoing, with the disposal process for the Union and Rustenburg mines under way.
Premarketing for Union had started and the company was finalising preparations for Rustenburg as a sustainable and standalone business.
CEO Chris Griffith outlined that, in line with Amplats’ strategy, the platinum producer would be disciplined with the deployment of resources to focus on the assets that provided it with the most value-accretive options.
“With the majority of the restructuring work complete, our focus remains on repositioning the portfolio to create a more profitable and sustainable business. We have a world-class portfolio of resources to enable this and have started the process of exiting assets that do not fit our portfolio as well as improving the performance of the assets we plan to retain,” he commented.
Griffith was expected to provide further information on the group’s turnaround strategy at an Anglo American investor day later on Tuesday.