Platinum Australia says disruption to production will be minimal as it moves from contractor underground mining at its Smokey Hills Mine to owner operator mining.

The firm says the transition will put it in a stronger position to meet its platinum production targets for the South African operation.

Cost savings of ten to 15 per cent will be achieved over the next three months with the removal of duplicated management positions and the contractors' overheads and profit.

The process is being completed with the "full cooperation" of current mining contractor, JIC Mining Services, and is due to be completed by the end of February.

Platinum Australia plans to retain all sub contractors currently working on the site, including ProParts Engineering and Manufacturing, which maintain and operate all mobile equipment, including the trucks, loaders and jumbo drill rigs.

"All employees of JIC and the subcontractors will be offered continuity of employment under their current terms and conditions," the firm said today (January 12th) in a statement.

The company added: "There is expected to be minimal disruption to production during the transition and no significant additional expenditure will be required."

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Platinum Australia moves to owner operator mining at Smokey Hills in South Africa (12/01/12)

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