Platmin Limited has reported record 4E platinum group metal (pgm) sales from its Pilanesberg Platinum Mine (PPM).

Sales of platinum, palladium, rhodium and gold were up over 100 per cent in the quarter ended June 30th from the previous three month period, rising from 10,870 oz to 21,888 oz.

For the half year to the end of June, sales were up 58 per cent to 39,791 oz. Sales in June were 9,258 oz, equating to 110,000 oz on an annualised basis.

However, the firm said plans to ramp up production to 12,000 oz a month by end of this year could be delayed by three to six months following damage caused by illegal strike action.

The disruption was caused by a group of employees of Platmin's mining contractor MCC, which operates PPM. Mining operations have since resumed in full.

Platmin chief executive officer Tom Dale said: "MCC has indicated that it is currently unable to haul the volumes of rock budgeted at the PPM site due to extensive damage to the fleet.

"As a result, PPM intends bringing in an additional mining contractor."

He explained that drilling, blasting and load and haul activities could separated to allow the new contractor, MCC and PPM focus on "core competencies".

Load and haul could be further separated into waste and reefing operations, he added, saying that PPM plans to take direct control of drilling and blasting to optimise mineral resource management and improve pit conditions.

Mr Dale explained that the planned changes could take up to six months to implement and will create "clear areas of accountability among the various parties".

"Prior to the industrial action, we were on our way to achieving breakeven and full production," he added.

"We are confident that, once the revised operating structures are functioning, we will get back on track."

Source:

Platmin Limited - Metal sales at record high in second quarter (15/08/11)
 

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