Anglo American Platinum (Amplats) yesterday said Eskom’s power outages knocked both concentrators and smelters in the third quarter, which led to a loss of production.
In its PGM’s production report released yesterday, the miner said its own-managed mine’s PGMs production decreased by 3% to 587 200 ounces due to Eskom power outages and load shedding.
“Amandelbult infrastructure closures and lower grade at Mogalakwena, partially offset by strong production performances from Unki up 41%, and Mototolo, up 9%, following the completion of the concentrator debottle-necking projects in 2021,” it said.
Refined platinum group metals (PGMs) production, owned production, excluding tolling, decreased by 30% to 994 800 ounces due to the Polokwane smelter rebuild, its first full rebuild in 12 years, which was on track for completion towards the end of the fourth quarter of 2022.
“PGMs sales volumes, from production, excluding sales from trading, decreased by 31% to 933 500 ounces in line with lower refined production,” Amplats said.
The group said the guidance for 2022 - metal-in-concentrate PGM production is unchanged at 3.9-4.3 million ounces.
“Refined production guidance for 2022 is unchanged at 3.7-3.9 million ounces. Unit cost per PGM ounce produced is maintained at R14 000 to R15 000. Guidance is subject to ongoing Eskom power disruptions,” it said.
Anglo American Platinum CEO Natascha Viljoen said: “Total PGM production was 6% lower compared to the prior period, but in line with the second quarter of 2022.
“We embedded stability at Unki and Mototolo, following their successful completion of the concentrator debottle-necking projects, which saw Unki increasing production by 41% and Mototolo by 9%. We also increased tonnes milled at Mogalakwena. However, this was more than offset by a 7% reduction in grade.
“This grade reduction was due to a delay in accessing the higher-grade South pits from the third quarter to the fourth quarter, and we have been mining these higher-grade areas since September.
“Amandelbult production was down 12%, largely due to the infrastructure closures at Tumela Upper at the end of 2021, and Eskom power outages.”
She said refined production of 994 800 PGM ounces was lower than expected, due to the planned rebuild of the Polokwane smelter, its first full rebuild in 12 years to ensure asset reliability over the long term.
“Sales volumes of 933 500 ounces declined in line with refined production. Sales volumes for the quarter were planned to be lower than refined production, as part of our risk mitigation plans during the Polokwane smelter rebuild,” she said.
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