Amplats assures investors that water leak will be mended soon

In March, Amplats shut down its entire ACP plant due and declared force majeure with its suppliers after a chain of events, including an explosion at the ACP phase A converter plant in February. Photo: Supplied

In March, Amplats shut down its entire ACP plant due and declared force majeure with its suppliers after a chain of events, including an explosion at the ACP phase A converter plant in February. Photo: Supplied

Published Jun 11, 2020

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JOHANNESBURG – Anglo American Platinum (Amplats) told investors on Wednesday that the water leak at its converter plant would be repaired by next week.

Amplats, a unit of Anglo American plc, said the detailed technical investigation into the cause of the leak showed localised damage to a single cooler tube that was now being replaced. 

“The repair work is expected to be completed next week, and recommissioning will then start once a detailed risk-based assurance process has confirmed it is safe to do so,” said the company. 

Last week, Amplats temporarily closed the high-pressure cooling section of the Anglo Converter Plant (ACP) Phase B unit for repairs after detecting a leak.

The company confirmed that this leak was unconnected to the repair work recently completed on the ACP Phase B unit. 

Amplats said that other maintenance was being carried out and additional controls put in place while the ACP Phase B unit was off-line in order to provide greater operational stability. 

“A prudent approach will be taken to safely ramp-up the ACP Phase B unit. Increased monitoring will likely result in intermittent stoppages to inspect the plant until the repairs to the ACP Phase A unit are completed,” said the company.

In March, Amplats shut down its entire ACP plant due and declared force majeure with its suppliers after a chain of events, including an explosion at the ACP phase A converter plant in February.

It also detected water leaks in the furnace at the ACP Phase B unit and temporarily closed it down for repairs.

The R150 million repairs to the water leaks at the ACP Phase B unit were completed in May.

Amplats said that it expected to complete the repairs to phase A by the end of the year. ahead of its previous estimates. 

In March Amplats said that it expected to complete repairs to phase A by the second quarter of  2021.

The company maintained its refined production platinum group metals (PGM) guidance.

Amplats shares closed 6.27 percent lower at R1 092.20 on the JSE on Wednesday.

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