Eastern Platinum (Eastplats) predicts a sharp fall in its full-year production as a result of illegal strike action at its Crocodile River Mine (CRM) on the Western Limb of the Bushveld Complex in South Africa.

In a statement announcing its Q2 production, the miner said output for 2011 will hit 105,000 platinum group metal (pgm) ounces. Last year Eastplats sold 131,901 oz.

For the three months between April and June, production fell by a third year-on-year to 20,528 oz.

Second quarter production was negatively impacted by labour issues relating to the illegal underground sit-in followed by an unprotected strike at CRM operations in early May. Concentrator recovery was also affected by the labour disruption.

Eastplats has since agreed a two-year wage deal with the National Union of Mineworkers and suspended 155 workers.

"Based on the actual production results for the first half of 2011, the operating history of CRM and the budgeted plan for the remainder of 2011, the company anticipates pgm production for the full year to be approximately 105,000 ounces," Eastplats said.

Meanwhile, the company also reported that Crocette is "progressing well" and on-reef development has commenced.

In addition, work at the 90,000 t/m Mareesburg open-pit/concentrator project on the Eastern Limb continues.

Source:

UPDATE 3-Eastplats reports lower Q2 output at S. Africa mine (19/07/11) 

http://www.platinum.matthey.com/media-room/news-room/eastern-platinum-q2-production-falls-after-strikes/800626548.html 

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