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Amplats ramps up stricken smelter, force majeure to be lifted

22nd May 2020

By: Martin Creamer

Creamer Media Editor

     

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The repair of the stricken Anglo Converter Plant (ACP) Phase B unit has been safely and successfully completed ahead of schedule, Anglo American Platinum (Amplats) said last week.

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

An 80-day completion date to May 25 was predicted, but Amplats said the ACP and full downstream processing operations were completing a safe ramp-up to full operation, expected from May 12, the date on which the force majeure to suppliers of concentrate was to be lifted.

The JSE-listed platinum group metals (PGM) mining and marketing company said the repair had enabled the restart of refined production of PGMs and base metals.

“We were vigilant in adhering to strict health and safety protocols to keep the repair team safe during the lockdown, whilst ensuring that we were able to implement social distancing and hygiene requirements, which form our new way of working during the Covid-19 pandemic,” Amplats CEO Natascha Viljoen stated in a media release to Engineering News & Mining Weekly.

The estimated final cost of repairs for ACP Phase B was R150-million, in line with the lower end of guidance provided.

“As we complete the ramp-up, we’re engaging with suppliers of concentrate to lift force majeure imminently. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms,” Viljoen added.

Repair work on the ACP Phase A unit was continuing and progressing in accordance with the project plan. All orders for long-lead items had been placed and dismantling work had begun on site.

Owing to the time taken to refine the respective PGMs and base metals, the force majeure notice remained in effect for the company’s refined metal customers. Force majeure arrangements with those customers would be lifted in the future and in line with the provisions of agreements.

Given the collective uncertainty around the startup of the ACP, the ramp-up of mining operations and the potential impact of Covid-19, Amplats stated that it was retaining its current guidance and would provide an update as appropriate when it had further information and clarity on production.

In accordance with lockdown regulations, the repair team was able to continue with repairs throughout South Africa’s extended national lockdown.

All materials required for repairs were ordered and available on site ahead of the lockdown, and there were no supply chain disruptions that impacted on the ability to complete the repairs.

Site safety protocol implementation was aligned with government approvals and regulations. A construction work risk review was completed to determine work phasing, the method of execution, key resource identification and increased health protocols.

The ACP construction repair team was split into two teams that self-isolated for the duration of the repair work, and Covid-19-specific health protocols were put in place for cleaning, screening and transport to site.

A new shift pattern introduced fostered physical distancing. Increased site hygiene measures for sanitisation, together with site safety and health supervision, were implemented to ensure safety and quality of construction.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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