Aquarius Platinum revealed yesterday (7th September) that it expects to lose between 15,000 oz and 20,000 oz in pgm output in its current financial year.

The world's fourth-largest platinum producer saw the main underground mining contractor at its Kroondal and Marikana operations dismiss 3,900 workers last month.

According to the company, the move was motivated by an illegal strike action, while some of the former employees have now attempted to block those willing to return.

As a result, Aquarius' recruitment process has been compromised, while production could only restart at Kroondal on 31st August and at Marikana on 3rd September.

"[Aquarius] has authorised a greater component of the recruitment process to consist of new employees, which necessitates a longer recruitment and induction process," read a statement from the firm.

"The engagement delay and employee deployment plan has extended the estimated ramp-up period and [Aquarius] now anticipates the total production loss to amount to between 15,000 and 20,000 oz of pgms for the financial year."

However, the company noted that the new employees will "stand it in good stead", while also revealing that plans to offset the production loss have been devised with the mining contractor.

The K1 and K2 concentrator plants at Kroondal have a combined capacity of 570,000 tonnes per month, while the Marikana plant processes 220,000 tonnes per month.

Sources:

REG-Aquarius Platinum: Engagement of new workforce at Kroondal & Marikana (07/09/09)

Aquarius Sees Output Loss at 15,000-20,000 Ounces (Update1) (07/09/09)

Ÿ Adfero Ltd