Impala Platinum Holdings has dropped a plan to boost output at its Marula Platinum unit after seeing disappointing results compared to operational targets set by management.

The company had originally planned to boost output by 35 per cent in two years, but a conversion to conventional mining from mechanised techniques at the Clapham shaft led to underperformance, said Impala.

"Initial indications are that Marula should remain a 70,000 platinum ounces-per-annum producer for the next two years as opposed to growing to 95,000 ounces of refined platinum by 2013," said the company in a statement.

Platinum producers are currently keen to boost output to capitalise on rising metal prices, with platinum making 58 per cent gains over the last two years.

The news comes shortly after Impala announced that it plans to cut staff at Marula, in which it has a 73 per cent stake, due to persistent failures to meet production targets.

Sources:


Implats Platinum says it drops plan to boost Marula mine's metal production (27/05/11)
Implats aims to cut jobs at S African Marula mine (27/05/11)

© Adfero Ltd