Impala Platinum (Implats) is to cut staff and scale back production at its Marula subsidiary because of "continued underperformance".

Marula is likely to remain a 70,000 platinum ounces-per-annum producer for the next two years, instead of growing to 95,000 oz of refined platinum by 2013, the firm said in a statement.

The world's second-largest platinum producer said recent underperformance is due to the conversion from mechanised to conventional mining at Claphamshaft, though the Driekop shaft continues to "perform well".

Implats confirmed that the scaling back of production targets will result in staff reduction, and said a Section 189 process has been initiated to give Marula sixty days to consult with workers.

"Given that the mine is currently staffed for a higher level of production, the Company is now in the process of investigating right sizing of the cost base for the lower level of production," Implats said.

Source:

Implats aims to cut jobs at S.African Marula mine (27.05.11)

© Adfero Ltd