Impala’s output grows despite mine fatalities
IMPALA Platinum, the world’s second-largest platinum producer, posted a 20 percent growth in platinum production for the September quarter, while grappling with fatalities, despite taking significant steps to improve safety measures.
The JSE-listed company, whose units include Impala Rustenburg, Zimbabwe-based Zimplats, Marula, Mimosa, Two Rivers and Impala Refining Service, slipped 0.48 percent lower to trade at R54.24 a share on Friday.
This as news that its gross refined platinum production in the September quarter climbed 20 percent higher to 365 200 ounces, from 304 100 ounces in September last year. It attributed the improvement mainly to solid performances from Zimplats, Marula, Mimosa, Two Rivers and its Impala Refining Services, coupled with the impact of planned furnace maintenance at the Impala Rustenburg smelters last year.
Impala Platinum’s chief executive, Terence Goodlace, said there had been three underground fatalities at its 20, 12 and 7 shafts in Impala Rustenburg, despite a five-month health and safety awareness programme launched in July.
Goodlace, who tendered his resignation as chief executive and was expected to leave the company by December, said the company’s growth momentum in platinum production, which started last year, had continued following a 20 percent increase in output over the last quarter.
“Impala Rustenburg was, however, affected by safety stoppages,” Goodlace said.
“But the production for the upcoming December quarter is expected to normalise due to the continued high level of focus on improving safety through key initiatives and enhanced dialogue with the Department of Mineral Resources and the Association of Mineworkers and Construction Union, as well as the resumption of full production at 1 shaft.”
Impala has struggled with fatal accidents: it reported that four employees died underground at Rustenburg’s 14 shaft in January.
The 14 shaft has remained closed since a fire, which ruined the conveyor infrastructure, power and air systems.
Work at the shaft decline section is progressing according to plan. The company said the first production section was expected to be recommissioned ahead of schedule by the end of this month, with full mining capacity planned to be restored from March.
Goodlace said: “Progress on the re-establishment of safe production at Rustenburg’s fire-affected 14 shaft is on plan and cold commissioning of the conveyor belt and its associated infrastructure in the upper part of the decline section has commenced.”
Impala reported 18.6 percent lower tons milled than the previous comparable quarter at 2.43 million tons.
Refined platinum production at Impala Rustenburg rose by 22 percent to 150 600 ounces, compared with 123 400 platinum ounces produced in the comparable quarter last year.