Amplats plans to keep Mogalakwena and Mototolo mines going
World number two platinum group metals (PGMs) miner, Anglo American Platinum, plans to continue operating its mechanised Mogalakwena and Mototolo mines and feeding its Polokwane smelter.
Mineral resources & energy minister Gwede Mantashe said on Wednesday that smelters and refineries could remain open, as well as mines supplying essential metals and minerals such as PGMs for medical uses and coal to supply state-owned power monopoly Eskom.
Underground mines with large workforces would have to shut to prevent the spread of Covid-19, which claimed two lives in SA on Friday as the number of confirmed cases topped 1,000. These are the first deaths in SA from the global pandemic.
Amplats, which is 80%owned by Anglo American, has started putting its underground mines at Amandelbult, the Modikwa joint venture with African Rainbow Minerals and the Kroondal joint venture with Sibanye-Stillwater, into care and maintenance. These mines supply the Mortimer and Waterval smelters, which will be temporarily closed.
Work on repairing the converter that had inexplicable water ingress will continue during the 21-day nationwide lockdown period that started on government orders at midnight on Thursday. Amplats intends returning the converter to production by May 25.
The converter, one of two identical plants, was shut down early in March because of the water leaks.
The converter had come into service after an explosion at its sister plant in February. These plants convert matte coming out of the smelters, extracting iron, and preparing it for the refining process.
Amplats declared force majeure, a clause in its supply contracts, allowing it to default on supplying metals to customers.
It would take an estimated 900,000oz of PGMs out of supply in 2020, roughly 20% of its annual output. “In line with SA government regulations, Anglo American Platinum has assessed the ability to continue some operations on a reduced basis,” Amplats said.
“Subject to further planning, mining operations at the openpit Mogalakwena mine, and at the mechanised Mototolo mine may continue on a reduced basis,” it said. “Following a thorough risk assessment to determine the safety of employees and contractors on site, additional safety, health and hygiene provisions have been put in place to protect the wellness of employees that will continue to work during the temporary shutdown period.”
Amplats will pay employees sent home during the threeweek lockdown their basic wages, a housing allowance and continue contributions towards their pension and medical aid funds.