Platinum group metals (PGMs) mining and marketing company Anglo American Platinum (Amplats) said late last month that repairs to its Anglo Converter Plant (ACP) Phase B, which had continued throughout the national Covid-19 lockdown period, were making good progress and were on schedule.

Amplats’ chain of processing facilities, as well as the Phase B unit that was meant to replace it, was temporarily closed on March 6 following an explosion.

Repairs started on the Phase B unit, with most of the replacement waffle cooler equipment obtained from the undamaged waffle coolers in the Phase A unit or from spares available in inventory, Amplats said in a release.

All procurement of additional equipment was from within South Africa, without any supply chain disruption being experienced.

The original estimated time for repairs was 80 days, with a completion date of around May 25.

Refined PGMs production, including tolling, decreased by 15% to 743 900 oz, owing to the ACP closure and the declaration of force majeure to secure a safe operating environment.

In the three months to March 31, PGMs production decreased 7%, compared with the prior year’s first quarter, to 954 800 oz. This led to a loss of 61 000 oz of PGMs in the quarter, largely owing to the impact of shutdowns implemented in response to Covid-19.

Amplats managed mines’ PGMs production decreased by 7% to 560 100 oz and joint venture PGMs production decreased by 10% to 188 800 oz.

PGM sales volumes decreased 13% to 681 300 oz on lower refined production, partially supplemented by a draw down in refined palladium inventory.

Covid-19 Update

Safe shutdowns implemented across all operations later extended to limited mining operations at the opencast Mogalakwena PGMs mine and the start-up of Polokwane smelter this month.

Amplats is in a strong financial position, with net cash of R11.8-billion as at March 31 and committed financial facilities of R20.5-billion.

Cost and capital expenditure savings of more than R4-billion have been identified for 2020.

During lockdown, employees are continuing to be paid their full fixed pay, as well as pension and medical benefits and housing allowances, where applicable, and local host communities continue to be supported through a comprehensive response plan focusing on providing food and water, and training and the supply of equipment to clinics and hospitals.

A response plan is in place to deliver a range of support for suppliers.