Strikes and stoppages curb Implats production

IMPALA Platinum’s (Implats’) production and costs were hit by a six-week strike in the March quarter that stripped out 120 000oz of platinum production. Safety stoppages also negatively affected the group in what was one of its most difficult quarters.

The Impala Lease Area, the major portion of the Implats’ business, reported 120 000oz of platinum lost to the strike that started in January and a further 21 000oz lost as its deep-level mines claw their way slowly back to full production. Implats has reported the strike-related losses have meant the company forfeited revenue of more than R2bn.

The mines should resume full production next month, said Implats CEO David Brown yesterday. He steps down at the end of next month, to be replaced by a gold mining veteran, Terence Goodlace.

Mine and shaft stoppages enforced by the Department of Mineral Resources for safety violations or fatal accidents led to the loss of 5 000oz compared to the 8 000oz and 25 000oz lost in the first and second quarters of Implats’ financial year to end-June this year.

Three workers were killed on its mines during the quarter, with two of those fatalities recorded at the lease area.

Tons milled from mines in the lease area fell 64% to 1,1-million tons because of all the disruptions. Impala shares were up 1,3% at R139,20 after the market digested the bad news during the quarter.

The ratio of platinum-rich Merensky Reef to the UG2 reef, which has increased palladium and chrome content, was also a factor during the quarter. Merensky output, which comes from underground mines, fell nearly 40%, while UG2 from an opencast mine was unaffected.