RBPlat output rises, but injuries and costs also up

Royal Bafokeng Platinum (RBPlat) reported an increase in first-quarter production but showed a worrying increase in injuries and cost escalation from the same period a year earlier.

RBPlat, which operates the Bafokeng Rasimone Platinum Mine and is building the Styldrift mine, said on Wednesday that its output of four platinum group metals grew 6.5% to 73,300oz in the three March quarters compared with that of the previous matching quarter.

The increase stemmed from improved milled tonnages, which grew 17% as the benefits of on-reef development at Styldrift were felt. This improvement offset a 6% fall in yield caused by unexpectedly higher dilution of ore as mining at Styldrift moved through an underground fault.

“Grades at Styldrift are expected to stabilise at around 3.30g/t [of four platinum group elements] during the second quarter as negotiation of the fault structure is completed,” it said.

Of concern was the steep increase in serious and lost-time injuries, which rose to five and 13, respectively, from one and eight a year earlier. RBPlat has been one of the most outspoken of the platinum miners when it comes to government-enforced safety stoppages.

RBPlat gave no reason for the rise in incidents.

Cash operating costs grew 12% to R701m, which equated to an increase of more than 7% to R10,823 in the cost per ounce of four platinum group metals.

The higher costs stemmed from increased output and labour costs.

“A key operational focus for the business is to improve the fixed/variable cost ratio of our operations to target below consumer price index unit increases for the year,” RBPlat said.