Anooraq has increased production at its Bokoni Platinum Mines in the eastern limb of South Africa's Bushveld complex.

The platinum group metal (pgm) miner said total amount milled for 2010 was up 11 per cent to 1,044,084 tonnes.

Despite the rise in production, the black economic empowerment company said it made a C$90.6 million (£57.7 million) loss as a result of higher labour and operational costs.

The final three months of the year actually saw a nine per cent quarter-on-quarter fall in production to 258,033 tonnes, mainly as a result of section 54 stoppages.

Platinum output rose two per cent to 63,141 oz for the full year, while production of other pgms fell.

Palladium mining dropped four per cent to 42,180 oz and rhodium output fell six per cent to 6,752 oz.

Meanwhile, gold rose five per cent to 4,091 oz, nickel seven per cent to 898 tonnes, while copper production was up nine per cent to 543 tonnes.

Platinum delivered the bulk of the firm's revenue (60 per cent) for the year, followed by palladium (16 per cent), rhodium and nickel (both ten per cent), gold (three per cent) and copper (two per cent).

Anooraq president and chief executive officer Philip Kotze said 2010 had been a mixed picture for the company and for the Bokoni mines.

"Many of the managerial and operational changes implemented at Bokoni post the takeover in July 2009 have been successful, and the improved mining performance is testament to the validity of our on-mine strategy," he added.

While the concentrator upgrade took longer than was anticipated, Mr Kotze said Anooraq is starting to see results with higher and more consistent yields.

He continued: "Importantly, we have made enormous strides in transforming our operating culture and in embedding many basic good practices in terms of mining and development, efficiencies, planning and cost control, into the running of the company."

Anarooq said it expects Bokoni to remain in a high capital growth expansion phase through to 2014 with project expansions continuing at the Brakfontein Merensky and Middelpunt Hill UG2 shaft operations.

Source:

Anarooq reports loss (24/03/11)
 
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