Platinum today: News/Production

South African pgm production up by 3.3 per cent in January

Thu, 11 Mar 2010 00:00:00 GMT

Pgm production increased by 3.3 per cent in South Africa during January, it emerged today (11th March).

Statistics SA confirmed that the sector made the most significant contribution to the country's overall mining production rising by 7.7 per cent over the course of the month.

The Pretoria-based agency noted that the improvement was the first since July 2008 and followed declines of 2.3 per cent in December and 2.2 per cent in November.

Meanwhile, pgm mineral sales were found to be 11.2 per cent lower in 2009 than for the previous 12-month period, with overall mineral sales slumping by 22.7 per cent.

However, the total seasonally-adjusted value of mineral sales at current prices for the fourth quarter of last year increased by 2.4 per cent from the preceding three months.

Pgms were again the major driving force behind the rise (up by 2.1 per cent), while manganese ore and gold sales jumped by two per cent and 1.4 per cent respectively.

South Africa is believed to account for about three-quarters of the world's platinum supplies.

Source:

Mining production picking up (11/03/10)

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Stillwater Mine pgm output up by 13 per cent in 2009

Wed, 03 Mar 2010 00:00:00 GMT

Stillwater Mining Company saw pgm production at its main facility in Montana increase significantly last year, it has been confirmed.

Output at the Stillwater Mine, which is located in Nye, reached 394,000 oz for 2009, representing an improvement of 45,000 oz, or 13 per cent, from 12 months earlier.

The results are impressive as the company was expected to struggle after losing its supply agreement with General Motors when the automaker filed for bankruptcy last summer.

However, with pgm prices set to stabilise further in 2010, Chief Executive Frank McAllister confirmed that Stillwater will increase its annual mine development outlay to $50 million.

"If [pgm] prices remain strong, the company may consider expanding its capital expenditures modestly to include some more discretionary projects as well," he said.

Mr McAllister added that Stillwater's main priority for 2010 would be to limit costs, rather than attempt to seek sizeable increases in mine production.

The platinum and palladium producer's latest financial figures also confirmed that it managed to restrict its annual losses to $9.1 million in 2009.

Underground mining at Stillwater Mine commenced in 1986 after the completion of its initial construction.

Source:

Stillwater Mining Co. Reports Upswing Despite Loss of GM (01/03/10)

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Lonmin's platinum sales 'to rise by 100,000 oz' by 2013

Wed, 03 Mar 2010 00:00:00 GMT

Lonmin is hoping to increase its platinum sales by about 14 per cent in the next three years, it emerged on Monday (1st March).

The world's third-largest producer of the precious metal is expecting sales of 700,000 oz this year, but is planning to push that total up to 800,000 oz by 2013, Dow Jones reports.

Chief Executive Ian Farmer revealed the company is exploring the possibility of increasing its smelter capacity in order to cope with the gradual advance in output.

Meanwhile, at an industry conference in Hollywood, Florida, Mr Farmer expressed his concerns about the impact of the ongoing electricity supply struggles in South Africa.

"I think the availability of power will be a factor to take into account when assessing the [platinum group metal] industry's ability to grow," he said, according to the news provider.

Lonmin is 25 per cent-owned by diversified Swiss miner Xstrata, which has already seen one hostile takeover attempt fall through but is rumoured to be lining up a further bid.

Source:

Lonmin CEO: Industry Growth May Be Limited By Lack Of Power (01/03/10)

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Worker strike at Smokey Hills stops pgm production

Wed, 03 Mar 2010 00:00:00 GMT

Pgm production has been halted at Platinum Australia's Smokey Hills mine in South Africa due to a workers' strike, it was confirmed yesterday (2nd March).

The company revealed that contractor employees from Redpath Mining refused to go underground at the start of the week and are engaging in unprotected industrial action.

Although Platinum Australia is uncertain about when the situation will be resolved, it believes operations could resume by the end of this week or the beginning of next week.

"[The strike] has resulted in the stoppage of almost all operations at the mine," read a statement.

"Scheduled maintenance work in the plant has been brought forward to assist in minimising the impact of the stoppage."

The company also announced that the employees have been told they will be dismissed if they do not return to work and that Redpath has a contingency plan if such an eventuality arises.

Platinum Australia revealed last week that it lost A$14.5 million (£8.7 million) in the six months to 31st December 2009, compared with a A$4.8 million loss in the equivalent period in 2008.

Source:

NissanPlatinum Australia: Labor Strike At Smokey Hills Mine (02/03/10)

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Lonmin to build chrome recovery plants

Tue, 02 Mar 2010 00:00:00 GMT

Lonmin has agreed two separate deals allowing it to build chrome recovery plants at its Marikana operation, it was confirmed today (2nd March).

The world's third-largest platinum producer will use the new facilities at the South African site to treat tailings from the concentrators at the UG2 reef.

In addition, the company confirmed that it is exploring the possibility of building plants to recover pgms after the initial process of removing the chrome.

"These agreements mark the continuation of a trend across the industry as pgm producers look to realise value through chrome by-product revenues and improved pgm recoveries," said Chief Executive Ian Farmer.

The contracts, which have been agreed with the Xstrata-Merafe Chrome Venture and ChromTech, will see the plants come into full production in the second half of Lonmin's 2011 fiscal year.

Meanwhile, Mr Farmer also told Dow Jones this week that South Africa's ongoing struggles to provide sufficient electricity will represent a major challenge for pgm producers this year.

Source:

UPDATE 1-Lonmin to build chrome recovery plants (02/03/10)

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Stillwater Mining Company reports pgm production increase

Thu, 25 Feb 2010 00:00:00 GMT

PGM production at Stillwater Mining Company, the only producer of platinum and palladium in the US, was up 6.2 per cent in 2009 on levels seen the previous year.

The company's results for 2009 show 529,900 oz of palladium and platinum were produced over the course of the 12 month period at the Stillwater and East Boulder mines in Montana.

At Stillwater, production increased from 349,400 oz to 393,800 oz on the back of improved efficiency and greater manpower following a staff transfer from East Boulder.

However, activity at the East Boulder mine tailed off as a result of downsizing and restructuring, leading to a decline in production from 149,500 oz in 2008 to 136,100 oz in 2009.

According to Stillwater chairman and CEO Francis R McAllister, the two mines' combined production in 2010 is expected to be 515,000 oz, which is slightly down on the figure reported for last year.

"Our management focus in 2010 will continue to center on strengthening our cost performance and improving mining efficiency, rather than on seeking to maximise mine production," Mr McAllister explained.

He added that safety performance across the company would also be the subject of management attention after Stillwater's record "deteriorated" over the last 12 months.

Meanwhile, combined sales realisations for mined palladium and platinum ounces averaged out at $539 per ounce over the 12 months, although the position improved as the year progressed.

By the fourth quarter of 2009, sales realisations averaged $579 per ounce, up from $498 per ounce in the equivalent period in 2008.

Source:

Stillwater Mining reports 2009 results (25/01/10)

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Chamber of Mines of SA backs Nersa price decision

Thu, 25 Feb 2010 00:00:00 GMT

The National Energy Regulator of South Africa's (Nersa) decision to increase Eskom's power tariff by 24.8 per cent from April 1st 2010 has received the backing of the Chamber of Mines of South Africa.

Although the chamber acknowledged the move would have an adverse effect on mining costs, it said the impact of the increase was "manageable".

However, had Nersa accepted Eskom's original demands then the chamber suggested significant problems could have been caused for the mining industry.

The 24.8 per cent tariff rise will apply for a year, before being followed by a 25.8 per cent increase for 2011/12 and a 25.9 increase for 2012/13.

Prior to the decision being made, Eskom had asked for a 45 per cent annual hike for the next three years, before downgrading this request to 35 per cent before Christmas.

According to the state-owned power utility, extra money is needed to meet rising operational and capital costs.

Despite this, Nersa chairperson Cecilia Khuzwayo confirmed yesterday (Wednesday, February 24th) that the regulator had chosen to restrict Eskom's recoverable revenue to R85 billion in 2010/11, R105 billion in 2011/12 and R141 billion in 2012/13, which is significantly less than the R99 billion, R146 billion and R216 billion demanded.

Even so, the average electricity price is likely to be pushed up to 41.5c/kWh from 33c/kWh this year, and to around 65c/kWh in 2012/13.

Commenting on the announcement, the Chamber of Mines said: "While preliminary modelling work by the chamber shows that the proposed electricity price increases will affect different mining smelting operations differently, the tariff increase permission granted would be much more manageable and cause much less damage than a 35 per cent increase per annum over the same period."

The chamber also confirmed that the decision was in line with the model it put forward at Nersa's public hearings in January 2010, and consistent with the Nedlac energy summit agreement.

Sources:

Chamber of Mines welcome entry price increases (24/02/10)

Mining chamber says SA power hikes will add strain, but in line with expectations (24/02/10)

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Northam Platinum announces production figures, approval of initial capex for Booysendal

Tue, 23 Feb 2010 00:00:00 GMT

A 7.4 per cent fall in tonnes milled was recorded by pgm producer Northam Platinum in the six months to December 31st 2009 when compared with the previous year.

The company's reviewed interim results and dividend declaration for the second half of last year show Northam's mine on the western limb of South Africa's Bushveld Complex milled 1,076,201 tonnes over the period, contrasting sharply with the 1,162,491 tonnes milled in the second half of 2008 and the 2,105,091 tonnes milled in the six months to June 2009.

The Merensky reef was worst affected, showing a 14 per cent fall in tonnes milled, while the UG2 reef recorded a reduction of just 0.8 per cent.

However, the combined average head grade improved by two per cent to 5.2g/t (3PGE+Au).

Ore reserve availability has fallen from 22 months to 18 months due to geological factors at Merensky, although it is hoped that the ore reserve position will be strengthened by a 20 per cent increase in development metres.

At the UG2 reef, ore reserve availability remained "satisfactory" at 24 months.

Meanwhile, the Northam Platinum board has given the go-ahead for an early works programme at its Booysendal platinum asset.

The works programme will be started immediately, with capital expenditure to the tune of $43.9 million allocated to build roads, pipelines and infrastructure.

This will pave the way for the construction of the mine, which is due to begin in July 2010.

In the meantime, issues including Environmental Management Programme approval, contractor selection and finance options will be considered.

With regards to the latter, Northam CEO Glyn Lewis said the company was likely to go to the market to ask for funding, although he stressed this would not impact on short-term plans.

"We have done some work on exploring various funding options, but more remains to be done. In the meantime, I must reiterate that we remain cash positive," he told Mining Weekly.

"We have an unencumbered balance sheet without any debt and in all likelihood we should be in a position to start the development of Booysendal from internal cash retentions," Mr Lewis said.

According to Northam's Rene Rautenbac, also speaking to Mining Weekly, mining production at Booysendal is expected to hit 130,000 oz of platinum a year from 2014.

Source:

H1 results marred by rand metal price slide (23/02/10)Northam Platinum likely to go to market for R3bn Booysendal (23/02/10)

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Impala Platinum reveals platinum production increase

Fri, 19 Feb 2010 00:00:00 GMT

Impala Platinum Holdings overcame the loss of 83,000 oz at its flagship operation Impala Platinum to record increased production figures for the six months to December 31st 2009, the company's consolidated interim results show.

Overall platinum production grew by two per cent to 895,000 oz as higher throughput at other operating units offset losses at Impala Platinum caused by an accident in the mine's 14 shaft and two weeks of industrial action.

The combined effect of the accident and industrial action was to restrict refined platinum production at Impala Platinum to 432,400 oz, with the lower volume also acting to raise operating costs.

However, performance at Marula, Zimplats, Mimosa and Two Rivers was more encouraging.

At Marula, a four per cent increase in tonnes milled to 816,000 oz led to a jump in platinum in concentration production to 37,900 oz.

That said, this rise was lower than expected due to problems encountered when moving to conventional mining.

Meanwhile, the achievement of full production at Zimplats' Phase One Expansion enabled tonnes milled at the facility to reach 1.97 million ounces - up by 82 per cent - and platinum in matte to grow by 74 per cent to 81,600 oz.

Increases were also recorded at Mimosa, with tonnes milled improving by 14 per cent to 1.15 million and platinum production in concentrate by 16 per cent to 51,100 oz.

Similarly, tonnage throughput augmented by 12 per cent to 1.48 million ounces at Two Rivers and platinum in concentrate climbed by 24 per cent to 72,300 oz.

According to CEO David Brown, the six months in question constituted a difficult period for the platinum mining industry, although he believes the worst could be over.

"This time a year ago the short-term was clouded with uncertainty as to the extent and depth of the recession," he told Reuters.

"While a double-dip recession cannot be ruled out the first signs of a global economic recovery are becoming apparent."

With its presence in the Bushveld Complex in South Africa and the Great Dyke in Zimbabwe, Impala Platinum has an attributable mineral resource inventory - including mineral reserves - of 230 million ounces of platinum.

Source:

Consolidated interim results for the six months ended 31 December 2009 (18/02/10)

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Zuma eases platinum mine nationalisation concerns

Thu, 18 Feb 2010 00:00:00 GMT

Fears that the mines in South Africa could be nationalised have been allayed by the country's president.

Speaking on Tuesday (February 16th), Jacob Zuma said nationalisation was not part of government policy, although he stopped short of dismissing the argument completely.

The issue was raised in South Africa's parliament after the youth league attached to President Zuma's ruling African National Congress (ANC) party called for the government to assume control of the country's mines.

While Mr Zuma said there were no plans to do so, he stated he was not about to suppress arguments in favour of the move.

"This is a democratic society, and as government, we cannot stop political formations to decide to open a debate on this topic or any other," he said.

As a leading producer of both platinum and gold, mining accounts for a significant portion of South Africa's economic output.

According to youth league president Julius Malema, poverty in South Africa could be alleviated if the state assumed greater control over the country's mineral wealth.

"He (Malema) has views, the ANC youth league always has views. Debate the views of Malema and don't confuse a debate raised to policy of government," Mr Zuma added.

Mr Zuma assumed the office of president on May 9th 2009, taking over from previous incumbent Thabo Mbeki.

Source:

Zuma says nationalisation not S.African govt policy (16/02/10)

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Zimplats output up by 75%

Wed, 17 Feb 2010 00:00:00 GMT

Production at Zimplats, an offshoot of South African mining company Impala Platinum, was up by 75 per cent in the second half of 2009, it has been revealed.

Mining Weekly reports that the company's platinum, palladium, rhodium and gold output increased to 163,490 oz in the six months to December 31st.

The news comes ahead of the full release of the results in Johannesburg on Thursday (February 18th).

According to the publication, a statement given to the ASX said improved production figures and higher metal prices had helped Zimplats record a $28 million half-year after-tax profit.

This compares favourably with the $26 million loss recorded in the comparative period.

"Metal prices improved during the period spurred by moderate levels of economic recovery recorded in most developed economies, as well as renewed appetite for platinum group metals investment products," the release said.

However, operating costs also increased and Zimplats was additionally hit by a tax bill for the period which came to $31 million.

Zimplats recently announced the resignation of Gregory Sebborn as a non-executive director of the board.

Mr Sebborn had previously served as Zimplats chief executive officer from January 2005 to August 2007.

Source:

Zimplats posts $28m profit, output jumps 75% (17/02/10)

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South Africa's total mining production boosted by PGM output

Thu, 11 Feb 2010 00:00:00 GMT

PGMs were a major contributor to an increase in South Africa's total mining production in the last quarter of 2009, it has been revealed.

Figures released by Statistics South Africa show that total mining production in the country were, on a seasonally-adjusted basis, up by 0.6 per cent in the October to December period when compared with the previous quarter.

Of this rise, 2.8 percentage points can be attributed to pgm output.

However, annual mining production in South Africa decreased by 6.7 per cent in 2009 based on year-on-year figures.

The results for 2009 follow on from the 5.6 per cent decline in production witnessed on a year-on-year basis in 2008.

Stats South Africa added that during the three-month period through to November last year, a rise of 1.5 per cent was witnessed on the previous quarter in terms of the seasonally-adjusted value of mineral sales at current prices.

This increase was mainly put down to increases in the sales value of pgms, which improved by 4.4 per cent.

Stats South Africa provides statistics on a range of topics to do with the country's economy and society.

Source:

Mining production down 6,7% y/y (11/02/10)

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Pan African Resources reveals pgm production plans

Thu, 11 Feb 2010 00:00:00 GMT

Further details on Phoenix Platinum's feasibility study into the viability of producing pgm from chromite tailings dams near Rustenburg will be made public in the coming weeks, it has been revealed.

Jan Nelson, CEO of Phoenix Platinum's parent company Pan African Resources, said the construction site of a planned treatment plant would be announced during the course of the next two weeks.

In an interview with miningmx following the presentation of Pan African Resources' interim results for the six months to December 31st, Mr Nelson also confirmed that the company expects production to start at the facility in May or June of next year.

Meanwhile, Mr Nelson told investors that Pan African Resources is looking to increase the scope of its pgm operations through acquisition.

Specifically, the company hopes to have boosted the size the of its controlled pgm resource from 405,000 oz to 1 million ounces by August.

Pan African Resources exercised its option to purchase 100 per cent of Phoenix Platinum in May 2009.

Source:

Pan African to up PGM resource (10/02/10)

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Aquarius Platinum announces pgm production increase

Thu, 11 Feb 2010 00:00:00 GMT

Attributable production at Aquarius Platinum for the period July 1st to December 31st 2009 was up on levels seen in the previous half-year, it has been revealed.

Figures released by the company as part of its half-year financial results bulletin show pgm production hit 208,857 oz in the first six months of the 2010 financial year.

This constitutes a seven per cent rise on the figures posted for the last half of the 2009 financial year, although it is also 20 per cent down on the results for the six months to December 2008.

However, this decline can largely be accounted for by the temporary closure of the Everest mine in December 2008 and the unprotected industrial action at Kroondal and Marikana in September 2009.

Meanwhile, Aquarius Platinum CEO Stuart Murray is optimistic about the company's prospects in the second half of the year in light of the completion of the Mimosa and Platinum Mile expansions, the impact made at Everest and the integration and production increase at Blue Ridge.

"I am pleased with the progress made with the ramp-up at Blue Ridge, the re-establishment project at Everest and the outcome of the Mimosa expansion," he confirmed.

Aquarius is the world's fourth-largest platinum producer and has interests in six operations in southern Africa.

Source:

Aquarius Platinum swings to H1 profit, resumes div (11/02/10)

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