Platinum today: News/Production

Stillwater Mining posts 18.2 per cent pgm output drop for Q2 2010

Thu, 29 Jul 2010 00:00:00 GMT

Stillwater Mining Company announced yesterday (28th July) that its pgm output declined by 18.2 per cent in the second quarter of 2010.

The Montana-based firm revealed that it produced 112,600 oz of platinum and palladium, compared to a figure of 137,700 oz for the same period 12 months earlier.

Of the production total, the flagship Stillwater mine accounted for 79,200 oz - compared to 103,000 oz in Q2 2009 - and the East Boulder mine took a share of 33,400 oz.

The company attributed the decline at Stillwater to a combination of lower grades, diversion of production resources into maintenance work and safety issues relating to its off-shaft area.

Chairman and Chief Executive Francis McAllister revealed that the full-year production guidance for 2010 has now been reduced from 515,000 oz to 495,000 oz.

"We had commented in our first-quarter analysis that the company's production outlook for the second quarter was likely to fall short of performance in the first quarter, but left our full-year guidance unchanged at that time," he said.

"However, the production challenges we encountered during the second quarter were more severe than anticipated and after reviewing their likely effect on the second and third quarters, we have concluded to adjust our full-year guidance downward."

Mr McAllister added that the problems are "transitional" and also revealed that he expects output for next year to be roughly the same as the original guidance for 2010.

Stillwater Mining Company is currently the only pgm producer based in the US.

Sources:

Stillwater Mining Reports Increased Earnings for Second Quarter (28/07/10)

DJ Stillwater Cuts 2010 Full Year Production Guidance By 4.9% (28/07/10)

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Anglo Platinum receives green light for mining rights conversion

Wed, 28 Jul 2010 00:00:00 GMT

Anglo Platinum has finally received permission to convert its mining rights, it has been confirmed.

The company's investors had been concerned about the situation after seeing the majority of its major platinum-producing rivals being granted their new order rights.

However, the world's largest platinum producer announced in its interim results for the six months to the end of June that the move received official approval last week.

"Anglo Platinum received letters of conversion for its mining rights which were granted by the Department of Mineral Resources (DMR) on 21st July 2010," said the company.

"Execution of these rights has commenced with three executed to date."

Anglo was asked to resubmit its social and labour plans after the DMR revealed earlier this month that it had given "unconditional conversion letters" for two mines but "conditional letters" for the rest.

The news arrives after South African Minister of Mineral Resources Susan Shabangu claimed recently that mining companies working in the country should always have an empowerment partner.

Anglo does not have one at present as it has instead transferred a number of platinum projects to black economic empowerment firms in deals with Northam Platinum, Anooraq Resources and Royal Bafokeng Platinum.

Source:

AngloPlat finally converts its mining rights (26/07/10)

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Aquarius' safety changes 'will not limit productivity'

Wed, 28 Jul 2010 00:00:00 GMT

Aquarius Platinum has confirmed that new safety measures at its Marikana mine will have no impact on reserve extraction percentages or bord width.

The company is putting several interim procedures in place at the South African facility's 4 Shaft after five workers were crushed to death following a rock fall earlier this month.

Although productivity will not be compromised as a result of the changes, the world's fourth-largest platinum producer did reveal that unit costs could rise by five per cent.

Following the fatalities on 6th July, the government issued an S54 suspension notice for the shaft while the Inspectorate of Mines carried out a safety audit.

The ban has now been lifted after Aquarius informed the Department of Mineral Resources of its new safety measures, which will include changing how it blasts underground.

In addition, the company will alter how it uses stope robot devices for earlier detection of rock movement and add lighting in stopes to illuminate hanging walls.

About 150,000 tonnes have been mined at the 4 Shaft during the month, with the temporary shutdown causing production to fall by 40 per cent to 4,400 oz pgm 4E (platinum, palladium, rhodium and gold).

Aquarius Platinum's activities mainly focus on the Bushveld Complex in South Africa and the Great Dyke region in Zimbabwe.

Sources:

DJ Aquarius To Add Safety Measures At Marikana Mine In S Africa (26/07/10)

DJ Aquarius Platinum: Marikana Shaft S54 Suspension Lifted (26/07/10)

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Anglo eyeing annual production rises of 100,000 oz until 2014

Tue, 27 Jul 2010 00:00:00 GMT

Anglo Platinum is planning to increase its production by 100,000 oz annually for the next four years, it emerged yesterday (26th July).

Chief Executive Neville Nicolau revealed that the company will aim to improve yearly output by at least three per cent from its current 2.5 million ounces over the next decade.

Speaking to Reuters, he claimed that the autocatalyst industry will continue to bolster demand for the precious metal, with the jewellery sector also featuring prominently.

"Our long-term strategy revolves around plans on how to find new uses for the metal," he told the news provider.

Mr Nicolau's comments were made after the world's largest platinum producer announced its interim financial results for the six months to the end of June.

Another issue to emerge from those figures was that the company had five deaths during the period, which represented an improvement of 16 per cent.

Mr Nicolau also noted that the year-to-date reduction in fatalities is at 50 per cent, but emphasised that he will not be happy until there are no deaths at Anglo's mines.

"What we have done along the way is demonstrated on many of our operations, and collectively, that we can go long periods of time without fatalities," he said in an exclusive interview with Moneyweb editor-in-chief Alec Hogg.

"And if you can go long periods of time without fatalities, then why can't you go forever without fatalities?"

Anglo's financial results also revealed headline earnings of R2.6 billion for the first half - which was a rise of 532 per cent - and growth capital expenditure of R4.5 billion.

The impressive expansion programme devised by the company has led to questions about whether Eskom will be able to meet its subsequent electricity requirements.

Severe power issues and a dangerous flirtation with a total black-out in South Africa in January 2009 have dogged the state utility as it embarks on its own capital build projects.

However, Mr Nicolau confirmed that he does not expect electricity to "directly" impact Anglo's plans for the next ten years, as long as the situation is managed "quite carefully".

"Certainly, in terms of our interaction with Eskom, I am pretty confident that we'll be able to manage the ongoing relationship," he told Mining Weekly Online.

"I can't guarantee that there will never be issues in terms of Eskom, but we will absolutely do everything we can do to reduce the amount of power that we consume and to help Eskom in times of difficulty."

The majority of Anglo Platinum's operations are located in the platinum-rich Bushveld Complex to the north-west and north-east of Johannesburg.

Sources:

INTERVIEW-Angloplat to lift output by 100,000 oz/yr-CEO (26/07/10)

Eskom positioned to power AngloPlat's growth requirements (26/07/10)

Angloplat interim results: Neville Nicolau – CEO, Anglo Platinum (26/07/10)

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Impala facing possible NUM strike action

Mon, 26 Jul 2010 00:00:00 GMT

Impala Platinum has been dealt a blow after a prominent union announced that it will consult with its members about commencing industrial action.

The National Union of Mineworkers (NUM) has been in dispute with the company about a new one-year wage deal, which was supposed to come into effect on 1st July.

However, the Commission for Conciliation, Mediation and Arbitration has now issued a certificate of non-resolution to the NUM members working for Impala.

The union has been seeking a ten per cent wage increase across the board, with further assurances relating to provident fund contributions and housing allowances.

Impala has offered an eight per cent pay rise for category A and B employees, which it believes would also cover the provident fund and housing grievances.

But Eddie Majadibodu, the NUM negotiator for the world's second-largest platinum producer, revealed that the union does not share this assessment.

"We may not be married to the percentage increment, but on [the] harmonisation of provident funds and the housing allowances, we are immovable property," he told Mining Weekly.

Impala spokesman Bob Gilmour announced that his company would not be commenting on the situation until the NUM members have voted on the strike action.

Wage disputes are viewed with great interest by the pgm industry in South Africa, as production invariably suffers if miners decide to down tools.

Source:

Implats may face wage strike as talks fail (26/07/10)

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Anglo Platinum unsure about beating full-year production target

Mon, 26 Jul 2010 00:00:00 GMT

Anglo Platinum has today (26th July) questioned whether it will be able to reach a previously-stated pgm output target.

The world's largest platinum producer has a full-year target of 2.5 million ounces for 2010, but indicated in April that this total could be surpassed by 200,000 oz.

However, Chief Executive Neville Nicolau has now cast doubt on this assessment, citing the effects of the European debt crisis and slow global economic recovery as the main contributing factors.

"We don't think it's appropriate at this time to push to produce 2.7 million ounces," he told Bloomberg.

Those comments come after Anglo revealed that equivalent refined platinum production reached 1.196 million ounces in the first six months of the year.

Refined platinum output totalled one million ounces, while refined platinum sales were 1.08 million, compared to the figure of 1.22 million recorded in H1 2009.

Despite retracting his earlier production claim, Mr Nicolau also asserted that the full-year target remains in place and that the fundamentals for the pgm industry still appear to be strong.

"We expect the platinum market in 2010 to remain in balance due to continued strength from the autocatalyst and industrial segments," he added.

"Interest in new applications for pgms remains buoyant as global pressures on environmental issues, energy security and diversification retain political and consumer interest."

Anglo Platinum is a subsidiary of Anglo American, which is one of the largest mining conglomerates in the world.

Sources:

Anglo Platinum Tempers Full-Year Output Plans on Weaker Economic Outlook (26/07/10)

Anglo Platinum results for the half-year ended 30 June 2010 (26/07/10)

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Eastern Platinum posts small pgm output rise for Q2 2010

Fri, 23 Jul 2010 00:00:00 GMT

Eastern Platinum has revealed that its pgm production increased slightly during the second quarter of 2010.

The company posted output of 30,820 oz for the three-month period, which was one per cent higher than the figure of 30,531 for the previous quarter.

However, this performance was 2,563 oz lower than corresponding quarter in 2009, when 33,383 oz were produced.

In addition, run-of-mine tonnes hoisted reached 297,186 and on-reef development totalled 3,202, representing declines of two per cent and 19 per cent respectively.

Eastern noted that these decreases can largely be attributed to the dismissal of 15 contract stoping crews in May and subsequent build-up and training of new crews.

"Full replacement of these crews was completed in July 2010," read one section of a statement.

"The company expects that on-reef development and production will increase once the new crews have been properly inducted and trained."

Eastern also revealed that a surface stockpile of 10,556 tonnes (or 1,100 recoverable pgm oz) was measured at the end of the quarter, with head grade maintained at 4.1g/t and concentrator recovery rising to an aver of 80 per cent.

Canada's leading pgm producer has assets on both the eastern and western limbs of the platinum-rich Bushveld Complex in South Africa.

Source:

Eastplats Reports Operating Results for the Quarter Ended June 30, 2010 (22/07/10)

http://www.miningweekly.com/article/eastplats-second-quarter-output-up-1-2010-07-23