Platinum today: News/Production

South Africa 'to impel platinum beneficiation'

Fri, 03 Feb 2012 00:00:00 GMT

More platinum group metals (pgms) mined in South Africa will stay in the country in future, the Department of Mineral Resources (DMR) has said.

Domestic pgm sales will rise as the government begins to impel firms into beneficiation, reports Mining Weekly.

DMR chief mineral economist for precious metals Donald Moumakwa told the publication that the current situation is not helping South Africa achieve maximum value from its large platinum reserves.

"The pgm industry is still very much export-orientated, with about 85 per cent of the metals leaving the country," he explained.

"The bulk of these are headed for the catalytic converter and fuel cell industries, as mitigating opportunities are accelerated in response to climate change threats."

In November, South African mineral resources minister Susan Shabangu said a beneficiation strategy had been approved by the South African cabinet in June.

Business Day reported this week that the ruling African National Congress looks likely to rule out mine nationalisation in favour of improved beneficiation.

A report to be debated by the party's national executive committee this weekend argues that nationalisation would be too costly and unconstitutional.

Mr Moumakwa went on to tell Mining Weekly that pgm production is likely to increase this year, though he noted that the number of projects is still down from the period before the 2008 financial crisis.

DMR acting director of mineral economics Nyakallo Dlambulo suggested, however, that the resurgent automotive industry is likely to spur much greater demand for platinum.

"As the number of vehicles on the road increases, further emissions reduction measures for these vehicles are demanded in response to increasingly stringent emissions standards," she said.

"This provides South Africa with increased pgms demand from the catalytic converters industry."

Mr Moumakwa finished by saying he is confident South Africa can continue to mine pgms for at least another 250 years.

Sources:

Government impels local PGM beneficiation (03/02/12)

ANC study ‘advises against’ mine grabs (02/02/12)

ANC Study Rejects Nationalization of South Africa Mines, Business Day Says (02/02/12)

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ANC 'advises against mine nationalisation'

Thu, 02 Feb 2012 00:00:00 GMT

A report from the African National Congress (ANC) has advised against the nationalisation of South Africa's mining sector, Business Day reported, citing an as yet unpublished report from its research team.

The study is thought to argue that so-called "asset grabs" would be too expensive and unconstitutional.

Instead, mining companies, including the world's top platinum producers, will face higher royalties and steeper taxes, as well as "more beneficiation of raw materials and the introduction of higher taxes on exporters of unbeneficiated materials", the Johannesburg newspaper said.

The report is likely to be discussed at a meeting of the ANC's national executive committee this weekend, Business Day revealed.

A separate report from the ANC's economic transformation committee, which is also thought to favour greater beneficiation ahead of mine nationalisation, will also be up for discussion.

The ANC has previously said nationalisation, which is being pushed for by its youth wing, is not government policy.

ANC economic policy chief Enoch Godongwana told Business Day that creating a mineral beneficiation industry was the "stated policy of the ANC".

"Where technology allows, we should make sure that we add as much value as possible," he added.

Platinum producers are among those in South Africa's mining industry that have suggested talk about nationalisation is deterring investment in the sector.

Sources:

ANC study ‘advises against’ mine grabs (02/02/12)

ANC Study Rejects Nationalization of South Africa Mines, Business Day Says (02/02/12)

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Impala Platinum sacks 13,000 workers

Thu, 02 Feb 2012 00:00:00 GMT

Impala Platinum (Implats) said today (February 2nd) it has sacked 13,000 workers who have engaged in the latest round of unprotected strikes at its Rustenburg operations in South Africa.

They had been given until Wednesday to return to work after downing tools in sympathy for the 5,000 or so rock drill operators who were dismissed for illegally striking.

It brings the total number of dismissals to 17,200, but the workers will be able to re-apply for their jobs, the world's second largest primary platinum producer said.

The strikes, which took root a fortnight ago with the rock drill operators, is costing the firm 3,000 oz a day in lost output.

A prolonged disruption could harm the firm's chances of hitting its target of 1.7 million ounces over the 2012 financial year.

Sources:

UPDATE 1-S.Africa's Implats fires 13,000 workers (02/02/12)

NUM accuses Implats of 'underhand' tactics (02/02/12)

Implats gives workers until Friday to reapply for jobs (25/01/12)

Impala Strike Impact Could Last Beyond Two Weeks, Goldman Says (26/01/12)

Implats says 15% of rock drill operators back at work (26/01/12)

Implats says Rustenburg strike illegal, to fire workers (24/01/12)

Implats says 5,000 workers on strike at Rustenburg (23/01/12)

Implats says losing 3,000 oz per day at Rustenburg (23/01/12)

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Aquarius Platinum to review Everest mine as output falls

Wed, 01 Feb 2012 00:00:00 GMT

Aquarius Platinum will review its Everest mine following a series of problems that have caused output to fall 17 per cent.

A two-week strike at the South African operation dented production and was compounded by safety stoppages elsewhere.

"The mine is now also under an optimisation study as a result of near-term poor ground conditions, lower prices and the significant delays in permitting the open-cast reserves," Aquarius chief executive officer Stuart Murray said in a statement.

Output at Everest fell by over a quarter (26 per cent) in the December quarter from a year before to 18,712 platinum group metal (pgm) ounces.

Across the company's entire operations in South Africa and Zimbabwe, pgm output fell 17 per cent to 105,629 oz.

Aquarius, the world's fourth-largest primary platinum producer, will limit production from Everest to 10,000 pgm ounces a month for the next 12-18 months as the review is carried out.

Source:

Aquarius Reviews Everest Mine as Platinum Output Falls 17% (31/01/12)

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Aquarius Platinum's Q2 production falls, safety stoppages blamed

Tue, 31 Jan 2012 00:00:00 GMT

Aquarius Platinum says second quarter production decreased four per cent quarter-on-quarter to 105,629 platinum group metal (pgm) ounces.

The firm blamed a "significant" rise in the number of Section 54 safety stoppages, which it noted is a problem affecting the entire platinum sector in South Africa.

Attributable 4E pgm production was 43,398 oz at Kroondal, 14,404 oz at Marikana and 18,712 oz at Everest, which was hit by a protected two-week strike by employees of the mining contractor in the quarter.

Output from its Chrome Tailings Retreatment Plant and Platinum Mile operations stood at 559 oz and 3,328 oz respectively.

The company's second quarter production was down 17 per cent from a year ago.

Chief executive officer Stuart Murray said the December quarter was "most challenging", both for Aquarius and the platinum industry as a whole.

He blamed increased Section 54 stoppages across the Rustenburg district and "continued underperformance" by the company's lead mining contractor.

Lonmin recently said it lost 177,000 ts production in the quarter as a result of safety stoppages.

Issues around the new hanging wall support methodology at Kroondal and Marikana are now "largely resolved", but production was below capacity "due to the widespread and sometimes unjustified application of Section 54 safety stoppages", Mr Murray explained.

He continued: "This issue is making the South African mining industry a difficult place in which to operate and whilst zero-harm is laudable, there must be practical implementation of the law.

"Not only has the incidence of these stoppages risen markedly, in many cases the time now taken by the regional department to resolve these stoppages has risen from some two days to a week or sometimes more."

In Zimbabwe, production at Mimosa fell 6.2 per cent 25,228 4E pgm ounces, but Mr Murray warned of the "negative regulatory impositions" continuing to escalate there.

He concluded: "The challenges facing the region's platinum industry at present should not be underestimated."

Sources:

DJ Aquarius Warns On Challenges Facing Platinum In Southern Africa (31/01/12)

Aquarius Platinum Limited Production Results to 31 December 2011 (31/01/12)

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Norilsk Nickel reports Q4 platinum, palladium production up

Mon, 30 Jan 2012 00:00:00 GMT

Norilsk Nickel said today (January 30th) that fourth quarter platinum and palladium production increased compared to a year ago.

Platinum output in Q4 was 162,000 oz, up from 161,000 oz the same period in 2010, while palladium production rose from 645,000 oz to 702,000 oz over the same time span.

Total platinum output for the year hit 695,000 oz, which the firm expects to match in 2012 with between 650,000 oz and 660,000 oz in Russia and around 20,000-25,000 oz from its international divisions.

Palladium output for 2011 was 2.81 million ounces in total, down two per cent from 2010, according to Reuters.

The world's largest palladium producer forecasts output of the metal to stay broadly flat this year, at between 2.6 million and 2.65 million ounces from its Russian divisions and 95,000-100,000 oz from abroad.

Sources:

Norilsk sees '12 nickel, palladium output flat (30/01/12)

DJ Norilsk Nickel 4Q Nickel Output Rises 3% To 79,616 Tons (30/01/12)

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Two miners killed at Modikwa Platinum underground operation

Mon, 30 Jan 2012 00:00:00 GMT

Two miners were killed at the African Rainbow Minerals and Anglo American Platinum joint venture Modikwa Platinum underground operation, the National Union of Mineworkers (NUM) said Saturday (January 28th).

The union says it is concerned at the number of deaths in South Africa's mining industry and called for "drastic action" to address the problem and "compel" the industry to improve safety.

"We call on the state to hold the industry fully accountable for its failures and adopt a no-nonsense approach when it comes to mine deaths," NUM spokesperson Lesiba Seshoka said.

He also called on the government to carry out a technical audit of mining infrastructure and equipment.

"The NUM strongly believes that drastic action is needed to compel the mining industry to comply with safety standards and procedures," Mr Seshoka added.

The latest fatalities bring the total number of workers killed in mining accidents to over ten.

In 2011, more than 120 mine workers died, though this is well below the fatality rate 25 years ago.

Platinum mining companies have recently attributed an increased number of Section 54 safety stoppages to falling production.

Lonmin indicated that further closures could risk it missing its full-year production targets, while Anglo American Platinum has also expressed concern at the number of safety inspections.

Announcing its first quarter results last week, Lonmin said it lost 177,000 ts production to safety stoppages.

David Msiza, the chief inspector of mines, told Reuters that mining firms are keen to promote safety, but worried at the amount of lost production when the government steps in with a Section 54 notice.

"The industry is really not disputing the Section 54s. They are really disputing the number of days lost," he explained.

A team will look at how stoppages are implemented by the government to try to minimise the impact on production in future, Mr Msiza added.

Sources:

NUM calls for technical audit as two more miners die (30/01/12)

Two miners die at Modikwa Platinum-union (28/01/12)

S.African task team to advise on mine closures (27/01/12)

Q1 2012 Production Report & Interim Management Statement (26/01/12)

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Lonmin increases platinum output in Q1

Fri, 27 Jan 2012 00:00:00 GMT

Lonmin posted a rise in first quarter platinum production in spite of safety stoppages, but warned sales could be hit if the problem persists.

Platinum metal in concentrate and refined platinum production increased by 3.5 per cent and 24.3 per cent respectively year-on-year, the firm said in a statement.

"Our mining performance in the first quarter of 2012 was however severely impacted by the increase in the Section 54 safety stoppages from the Department of Mineral Resources (DMR) that were experienced industry wide," the firm said.

Lonmin did not change its sales guidance for the current year of 750,000 oz of platinum, but warned that sales could be hit by continued safety stoppages.

In total, the safety stoppages resulted in over 177,000 ts of lost production from the company's operations in South Africa.

Total platinum group metal production for the quarter was 245,950 oz, an increase of 2.3 per cent from the prior year.

Platinum sales of 92,863 oz were 39.8 per cent higher than a year ago, as a result of increased production and stock movement in the quarter.

Total pgm sales increased by 2.9 per cent to 189,590 oz.

Source:

Q1 2012 Production Report & Interim Management Statement (26/01/12)

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Impala Platinum workers get Friday reapplication deadline

Fri, 27 Jan 2012 00:00:00 GMT

Workers at Impala Platinum's (Implats) Rustenburg operations who were dismissed by the firm for taking illegal strike action have until today (January 27th) to reapply for their jobs.

Around 5,000 rock drill operators at the Ngezi Mine downed tools over salary grievances last Friday in a wildcat strike declared illegal by a court.

Implats subsequently dismissed all the employees involved, but a deal with the National Union of Mineworkers gave the workers until today to reapply.

By yesterday afternoon, just 15 per cent had reapplied for their jobs, according to Mining Weekly.

The miner estimated the strike was costing it 3,000 platinum group metal ounces per day in lost production.

A report from Goldman Sachs said the impact of the strike could last longer than the two weeks predicted by the company, according to Bloomberg.

"When looking at the Lonmin K3 situation, the impact was closer to four full weeks of lost production as the company was unable to hire all workers back," the authors of the report wrote.

Sources:

Implats gives workers until Friday to reapply for jobs (25/01/12)

Impala Strike Impact Could Last Beyond Two Weeks, Goldman Says (26/01/12)

Implats says 15% of rock drill operators back at work (26/01/12)

Implats says Rustenburg strike illegal, to fire workers (24/01/12)

Implats says 5,000 workers on strike at Rustenburg (23/01/12)

Implats says losing 3,000 oz per day at Rustenburg (23/01/12)

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Platinum, rhodium, palladium production falls at Anglo American amid safety stoppages

Fri, 27 Jan 2012 00:00:00 GMT

Anglo American says platinum production has slipped by a fifth over the last year due to a greater number of safety stoppages resulting in lower mine production and increased processing of lower grade surface stockpiles.

Refined platinum production decreased 19 per cent to 710,000 oz, the miner said, giving an update on operations during the three months to the end of December.

Equivalent refined platinum production declined by nine per cent to 583,200 oz, due to a higher number of safety stoppages at Tumela, Dishaba, Union and Rustenburg.

This was offset by a "strong performance" at Mogalakwena's North pit and full ramp-up at Unki mine, the company said.

Mogalakwena's head grade and recoveries improved by seven per cent and per cent year-on-year respectively during the fourth quarter of 2011.

Unki mine reached steady state during the fourth quarter of 2011, a full year ahead of schedule.

"There were 32 safety stoppages during the fourth quarter of 2011 compared with 14 during the fourth quarter of 2010 and 16 during the third quarter of 2011," Anglo American said.

"Refined production decreased by 19 per cent year-on-year primarily due to lower mine output."

The statement also said refined production of palladium and rhodium decreased by 22 per cent and 13 per cent respectively.

Sources:

Anglo American plc Production Report for the fourth quarter ended 31 December 2011 (26/01/12)

Anglo Platinum Reports Drop In Refined Output From Stoppages (26/01/12)

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Zimplats strikers return to work

Thu, 26 Jan 2012 00:00:00 GMT

Impala Platinum (Implats) said workers at its Zimbabwean unit Zimplats returned to work yesterday (January 25th) after going on strike last week, Reuters reports.

Staff at the firm's Ngezi mine downed tools demanding the company pay their household electric bills, company spokeswoman Busi Chindove said.

Production was unaffected by the strike, which involved around half of the mine's workforce.

"They are all back at work. Management didn't change its position on the matter," Chindove told the news provider.

A strike at Implats' Rustenburg operations in South Africa continues, however, with the miner saying it will begin dismissing workers involved in the "illegal" action, which is costing it 3,000 platinum group metal ounces per day in lost production.

Sources:

Zimplats workers end strike over power bills (25/01/12)

Zimplats mine workers strike(21/01/11)

Implats says Rustenburg strike illegal, to fire workers (24/01/12)

Implats says 5,000 workers on strike at Rustenburg (23/01/12)

Implats says losing 3,000 oz per day at Rustenburg (23/01/12)

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Zimbabwe set to raise platinum mine licence fees

Wed, 25 Jan 2012 00:00:00 GMT

Registration fees for platinum mines in Zimbabwe will rise from $300 to $2.5 million, state-run media has reported.

Prince Mupazviriho, the permanent secretary in the mines ministry, told the state-owned Herald newspaper that the government plans to announce the changes soon, though no firm plans have yet been made.

Application fees for a prospectors licence for platinum would also rise steeply under the plans, from $150 to $500,000.

The measures are being billed as a way to discourage speculative holding of claims.

Finance Minister Tendai Biti recently raised the royalties on platinum to ten per cent from the previous five per cent levy, while platinum miners in Zimbabwe are currently in the process of negotiating indigenisation plans to meet Harare's demands for local black investors to own 51 per cent of foreign mining firms.

The government also plans to hike application fees for coal, coal-bed methane gas, mineral oils, natural gas and nuclear energy mineral resources from $5,000 to $100,000.

Sources:

Zimbabwe mine licence fees set to soar - state media (25/01/12)

Zimbabwe miners face soaring fees – report (25/01/12)

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Eastplats' Q4 CRM production hit by strikes

Tue, 24 Jan 2012 00:00:00 GMT

South Africa-focused Eastern Platinum (Eastplats) has released its fourth quarter production statistics for its flagship Crocodile River Mine, which show a sharp drop in output from the previous three-month period.

Production fell from 26,955 platinum group metal (pgm) ounces in Q3 to 19,854 oz in Q4.

In a statement, the firm explained that fourth quarter mining and production at CRM were hit by strike action by employees of the mine's main mining contractor, JIC Mining Services.

There was also a Section 54 shut-down of operations following a fatality at CRM in November.

"Both incidents resulted in stoppages of mining operations. Concentrator recovery decreased as a result of the subsequent disruptions to the steady state operation of the processing plant," Eastplats said.

However, the firm also indicated that 2012 will deliver much stronger production figures, with mine development projects on track at the Zandfontein section.

Development work on the Maroelabult Section is progressing well and the mine life of this section has been extended by two years to 2016.

"The company does not expect a repeat of the negative events of 2011 at CRM during 2012 and anticipates production from CRM to be approximately 125,000 pgm ounces," Eastplats added.

Source:

Eastplats Reports Production Results For the Quarter Ended December 31, 2011 (24/01/12)

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Implats starts firing Rustenburg workers, loses 3,000 oz per day

Tue, 24 Jan 2012 00:00:00 GMT

Impala Platinum (Implats) says it has started sacking workers involved in illegal strike action at its Rustenburg operations in South Africa, which is costing the firm 3,000 platinum group metal (pgm) ounces per day in lost output.

The primary platinum producer warned the 5,000 rock drill operators that it would commence dismissal procedures if they failed to show up for work today (January 24th).

Implats said the striking workers, who began their action on Friday over salary grievances, "have failed to report for duty this morning".

"As the strike has been declared illegal the company has started dismissing these employees," the miner said in a statement.

A spokesman for Implats told Reuters yesterday that the miner is losing 3,000 pgm ounces per day in output as a result of the Rustenburg industrial action.

Sources:

Implats says Rustenburg strike illegal, to fire workers (24/01/12)

Implats says 5,000 workers on strike at Rustenburg (23/01/12)

Implats says losing 3,000 oz per day at Rustenburg (23/01/12)

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Implats hit by strikes in South Africa, Zimbabwe

Mon, 23 Jan 2012 00:00:00 GMT

Around 5,000 workers at Impala Platinum's (Implats) Rustenburg operations in South Africa downed tools Friday (January 20th), the miner has said.

The firm said the strike by rock drill operators, who are taking action over "salary grievances", continues today.

"A court order has declared the strike illegal and the company will follow due legal process with all employees who do not report for duty on Tuesday, 24 January 2012," Implats said in a statement.

Meanwhile, hundreds of workers at the miner's Zimbabwe unit have taken industrial action demanding the company pay their household electricity bills, state-owned newspaper Sunday Mail reported, citing Zimplats head of corporate affairs Busi Chindove.

"We can confirm that some of our workers at Ngezi Mine have resorted to taking industrial action," she said. "Please note, 50 per cent of the workforce has reported for duty."

Ms Chindove said the strike action has hit platinum production and revenue inflows.

She also stated the workers' committee chairman for Ngezi Mine is "facing disciplinary action for violation of the company code of conduct".

Sources:

Implats says 5,000 workers on strike at Rustenburg (23/01/12)

Zimplats mine workers strike(21/01/11)

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Sylvania Platinum reports record production

Mon, 23 Jan 2012 00:00:00 GMT

Sylvania Platinum has reported record production statistics from its dump operations in South Africa's Bushveld Complex.

The platinum group metals (pgm) processor and developer said its Sylvania Dump Operations generated production of 25,179 oz for the six months to December 2011, marking a 36 per cent increase compared to 18,530 oz for the same period in the 2011 financial year.

Output of 13,089 oz in the first quarter and 12,090 oz in the second quarter were the two highest production totals in the company's history.

Sylvania said a number of "major mechanical incidents" during Q2 prevented it from beating the record production announced in the first quarter.

The firm expects further uplift in production in the third quarter thanks to the completion of the Mooinooi expansion No 2 plant, Sylvania's sixth plant.

By the end of the year, the firm forecasts annualised production of 60,000 pgm ounces, including a targeted 2,000 oz from the Chromite Tailings retreatment Plant.

Chief executive officer Terry McConnachie said: "This quarter has been about bringing the expanded Mooinooi operations back into production and I am pleased all the necessary work has been completed.

"With the groundwork completed for significantly expanded pgm production capacity I look forward to continued positive production growth for Sylvania Platinum."

Source:

Sylvania Platinum Ltd : Operations Update: Half Year Production (23/01/11)

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David Brown resigns as Implats CEO

Wed, 18 Jan 2012 00:00:00 GMT

David Brown has resigned as chief executive officer of Impala Platinum (Implats).

He will step down from his role as CEO and executive director of the board from June 30th, the company said in a statement.

Implats said Mr Brown, who joined the board of directors in 1999, is leaving to "pursue his own interests".

The platinum miner said a successor has been identified and an announcement will be made in due course.

Dr Khotso Mokhele, chairman of the board, thanked Mr Brown for his work as CEO, a role he took on in 2006.

"David has played a pivotal role in driving the success of the group and the board wishes him well in his future endeavours," he added.

Mr Brown played a key role in the development of the company's Zimbabwean assets and was also responsible in securing the Royal Bafokeng Nation as the anchor empowerment partner for the group.

Source:

Resignation of Chief Executive Officer and Executive Director of the Board (18/01/12)

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Platinum output pushes up South African mining performance

Wed, 18 Jan 2012 00:00:00 GMT

A sharp rise in platinum group metal (pgm) production helped to lift South Africa's mining industry during November.

Analysis of officials figures by Nedbank shows pgm output rose 23.4 per cent from October, when production had slipped by nearly a fifth from September.

Total mining output rose by a seasonally-adjusted 11.2 per cent month-on-month in November, the strongest rate of growth since April 2008.

The quarterly average shows platinum production has slipped by over 15 per cent from 2010.

Nedbank says mining production will remain "weak" over the coming months.

"Mining production recovered in November following a sharp decline in the previous month, with total output rising by 11.2 per cent m-o-m on a seasonally adjusted basis. This was mainly attributed to a jump in production of platinum group metals," the company noted.

Source:

Mining production improved in November (17/01/12)

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Duluth Metals reports 'strong' drill results from Minnesota

Wed, 18 Jan 2012 00:00:00 GMT

Duluth Metals has reported "strong" drill results from its Twin Metals Project in Minnesota after assays revealed high grades of platinum and palladium.

The firm announced 40 feet of 2.268 g/t total precious metals following its most recent exploration work at the project.

"These positive drill results continue to be extremely encouraging," commented Vern Baker, president of Duluth Metals.

"They show good grades and strongly indicate the expansion potential of the Central and Eastern High Grade Zones."

He added: "Overall the development drilling also shows the strong pgm component of the project."

The Twin Metals Project covers over 25,000 acres of land and mineral interests in Minnesota and delivers a platform to develop one the world's largest copper, nickel, pgm deposits within the emerging mining belt.

Duluth Metals said a new AMEC resource study will be completed by February.

Source:

Duluth Metals Announces 40 feet of 2.268g/t Total Precious Metals on Latest Drilling at the Twin Metals Project (17/01/12)

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Platinum producer Lonmin invests in Wallbridge Mining

Wed, 18 Jan 2012 00:00:00 GMT

The world's third-largest primary platinum producer, Lonmin Plc, has announced a $2.5 million private placement with Wallbridge Mining.

"This recent investment shows Lonmin's continued confidence and support for our exploration work in Sudbury. The Sudbury Basin is the most attractive target area in the world for the discovery of high grade copper, nickel and platinum deposits," stated Alar Soever, chief executive officer of Wallbridge.

Sixty per cent of the proceeds will be used to advance further exploration of the Sudbury area in Ontario, Canada.

Lonmin has been exploring for platinum group metals with Wallbridge in the region since January 2002. In 2007, Lonmin acquired 10.8 million common shares in Wallbridge.

Marz Kord, president of Wallbridge, said the latest investment shows Lonmin "continues to be not only a great joint venture partner, but also a supportive shareholder of Wallbridge in our exploration work in Sudbury".

Albert Jamieson, chief communications officer at Lonmin, said: "We look forward to progressing the projects in the coming year."

Wallbridge has 48 mineral projects on the go, including 12 joint ventures with partners Impala Platinum, Lonmin, Xstrata Nickel and a number of junior mining companies.

Source:

Lonmin Plc Makes Private Placement in Wallbridge Mining (17/01/12)

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North American Palladium predicts 'modest' production growth in 2012

Tue, 17 Jan 2012 00:00:00 GMT

North American Palladium (NAP) says it expects to see "modest" production growth from its flagship Lac des Iles (LDI) palladium mine in Canada in 2012.

Payable palladium output from the mine will increase to between 150,000 and 160,000 oz this year from 146,000 oz in 2011, the firm said in an update.

NAP also said it will undertake 70,000 metres of palladium exploration drilling in 2012 to expand reserves and resources and identify new targets.

"We expect modest growth in palladium production in 2012, a year in which our top priority is the completion of phase one of the LDI mine expansion with the commissioning of the new shaft by year-end," stated William J Biggar, president and chief executive officer.

"This will enable us, starting in 2013, to reduce our cash costs per ounce while allowing us to increase production."

NAP said underground mining is expected to average 2,600 tonnes per day in 2012, with ore sourced from the Roby Zone as well as the upper part of the Offset Zone.

Underground ore is forecast to have an average head grade of 5.3 g/t and surface ore 1.9 g/t.

Overall, the firm expects to mill approximately 1.8 to two million tonnes of underground and surface ore at an average palladium head grade of 3.7 g/t, with a mill recovery of 78 per cent.

NAP was keen to stress that 2012 will remain a "transitional phase" for LDI as expansion work continues.

A new shaft will allow NAP to increase the underground mining rate at the mine to 3,500 t/d at the beginning of 2013.

Production will be gradually ramped up during 2013 and 2014 to 5,500 t/d in 2015, by which time the firm expects production to exceed 250,000 palladium ounces.

"I am very pleased with the significant progress made in 2011 on our mine expansion development activities," commented Greg Struble, vice-president and chief operating officer.

"During 2012 we will continue to make major investments in our mines, in exploration, and in our people and I am confident that we have the right team and processes in place to achieve our objectives."

More details of the 2011 production figures will be provided when the company releases its year-end results in February.

Source:

North American Palladium Announces 2012 Guidance on Production, Capital Expenditures and Exploration Budgets (17/01/12)

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Platinum Australia begins Smokey Hills owner operator move

Thu, 12 Jan 2012 00:00:00 GMT

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."

Source:

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

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SA platinum miners ready to cut back on electricity if required

Wed, 11 Jan 2012 00:00:00 GMT

The biggest electricity users in South Africa, which includes the country's platinum mining sector, could reduce their power usage in order to avoid blackouts and power cuts.

Mining Weekly reports that state utility provider Eskom has warned that it is operating at a low reserve margin as a result of planned maintenance.

"This, coupled with unforeseen system failures, had put the system under significant pressure," spokesperson Hilary Joffe told the news provider.

In light of this, many of the country's main electricity consumers are preparing to scale back usage if necessary, which could hit the production of platinum and other metals and minerals.

Energy Intensive User Group chairperson Mike Rossouw explained that the sector was aware of the situation and companies were willing to reduce demand if required by Eskom.

"It does not appear as if South Africa is in the same situation as in 2008," he said, alluding power cuts that left mines and smelters shut for days.

Chamber of Mines spokesperson Jabu Maphalala added: "This is merely the continuation of a long-existing situation. Eskom has been in dialogue with the mining industry over the last five years, and our members have responded positively."

Eskom recently warned that the first unit of the new 4,800MW Medupi power station in South Africa's Limpopo province may not be ready by the end of 2012 as currently planned.

Source:

Energy intensive users prepared to reduce demand (10/01/12)

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