JOHANNESBURG (miningweekly.com) – Shares in TSX- and JSE-listed Atlatsa Resources surged more than 20% on Wednesday after a new financial and operational restructuring plan was announced for Bokoni platinum mine, in Polokwane.
The operation, a joint venture with Anglo American Platinum, issued a Section 189 notice to start retrenchments based on operational requirements and would propose offering voluntary severance and early retirement packages to minimise the impact of the restructure.
Comprehensive support measures to mitigate the impact of the proposed restructuring on affected employees would also be introduced as Bokoni downsized to ride out a prolonged period of depressed platinum-group metals commodity prices.
The parties aimed to scale back the mine’s existing cost structure, deliver a significant reduction in labour overheads, reduce the unit cost of production and increase production volumes of higher-grade ore from underground operations.
The Bokoni mine remained in development with the continued ramp-up of the Middelpunt Hill UG2 and Brakfontein Merensky development shafts to steady-state production of 60 000 t/m by the fourth quarter of 2016 and 100 000 t/m by 2019.
Atlatsa would continue mining at the Klipfontein Merensky opencast operation as a mill gap filler during the ramp-up of the underground operations, while the older, high-cost UM2 and Vertical Merensky shaft operations would be placed on care and maintenance.
The 60-day consultation process was expected to end on November 16.