IMPALA Platinum (Implats) saw production drop during the quarter ended September this year as the mining company grappled with an unstable power supply and labour problems at its flagship Rustenburg operations.
This was coupled with a critical skills shortage and logistical constraints at its Canadian mines.
The company on Friday said total concentrate volumes decreased 6 percent, to 809 000 ounces, with a 5 percent decline in managed volumes to 592 000 ounces. It said gross refined and saleable production volumes declined 15 percent, to 741 000 ounces.
Milled production at Impala Rustenburg decreased by 12 percent, to 2.59 million tons, while higher milled grade and yield gains resulted in a 9 percent decline in concentrate production to 315 000 ounces.
Chief executive Nico Muller on Friday said that production was impacted by unprotected industrial action among the contractor workforce, compounded by unstable power supply, increased safety stoppages, cable theft and community disruptions.
“Targeted interventions to mitigate the impact of each of these factors were developed and implemented at the operation,” said Muller.
Impala Rustenburg’s refined production fell 22 percent to 292 000 ounces during the quarter, from 372 000 ounces in the prior comparable period.
Muller said the skills and logistical constraints in Canada were “regional in nature”, affecting the broader North American mining industry, and not
unique to the Ontario region in which the company’s Canada’s operations are located.
“At Lac Des Iles, it has directly impacted the operation’s maintenance programme, resulting in poor underground equipment availability and absolute volumes produced,” he said.
Implats this week announced a proposed takeover of Royal Bafokeng Platinum, whose operations adjoin those of Implats Rustenburg division, marking a further consolidation of the platinum sector.
Muller said platinum group metals markets (PGMs) were experiencing heightened volatility due to global macroeconomic factors and supply chain constraints impacting automotive production.
“However, at Implats, we continue to benefit from robust absolute pricing for our products. The sustained demand from our customer base is indicative of the strong underlying fundamentals for PGMs,” he said.
The company said its Marula mine in Limpopo benefited from improved operational continuity following safety stoppages in the fourth quarter of the 2021 financial year, and said milled volumes at the Mimosa mine in Zimbabwe were impacted by planned maintenance and declined by 3 percent to 704 000 tons.
Implats previously said it planned to complete definitive feasibility studies for life-of-mine extensions through existing infrastructure at Marula and Mimosa.
BUSINESS REPORT ONLINE