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Johannesburg - Shares in Aquarius Platinum [JSE:AQP] were down more than 7% on Thursday morning after the company said a safety review at its Blue Ridge Mine in Mpumalanga Province would have a negative impact on production in the short term.
At 11:00 on the JSE, Aquarius' share price was down R3.19, or 7.78%, at 37.80 rand.
Following two fatal accidents at the mine in the past month, the company has undertaken a comprehensive review of the mine plan and safety procedures and practices at the Blue Ridge Mine.
Following the second fatality, mining operations were subject to a Section 54 suspension and management at the mine then extended this suspension, keeping the mine closed for a two week period during which time the mining contractor has undertaken the retraining of all the workers at the mine as a precautionary measure.
Mining operations recommenced on June 28. It is anticipated that the Blue Ridge mine will now produce approximately 80 000 4E PGM ounces in the 2011 financial year, the company said. A company spokesperson told I-Net Bridge that the original production forecast had been for 100 000 ounces and therefore the loss would amount to some 20 000 ounces.
Following the safety review, Aquarius has refocussed its 12 month strategy for Blue Ridge on safe, productive mining with the generation of greater redundancy of mineable reserves.
Although the temporary suspension of mining activities and the review of safety systems and the mine plan will slow the ramp-up of the mine and have a negative impact on production in the short term, these measures will provide for safer and more sustainable output over the long term.
Aquarius CEO Stuart Murray said in a statement that Aquarius considers the safety of its mines to be a primary concern, and the fatalities at the Blue Ridge mine are both unacceptable and deeply regrettable.
"We will do whatever is required to ensure that production at this mine is accomplished as safely and sustainably as is the case at Aquarius' other operations and meets our aim of constantly improving our safety track record. At this stage this means that in the interests of safety it is more prudent to slow the ramp-up of the mine and review certain aspects of the existing mine plan to further conform it to our standards and ensure the ongoing safety of personnel on our mines.
"We expect the ramp-up to take approximately a further 12 months, during which time this mine may continue to be treated as a mine in commissioning and thus revenues, operating and capital costs will be capitalized. The market will be informed of the impact of the mine plan review once this information becomes available," he said.
- I-Net Bridge
At 11:00 on the JSE, Aquarius' share price was down R3.19, or 7.78%, at 37.80 rand.
Following two fatal accidents at the mine in the past month, the company has undertaken a comprehensive review of the mine plan and safety procedures and practices at the Blue Ridge Mine.
Following the second fatality, mining operations were subject to a Section 54 suspension and management at the mine then extended this suspension, keeping the mine closed for a two week period during which time the mining contractor has undertaken the retraining of all the workers at the mine as a precautionary measure.
Mining operations recommenced on June 28. It is anticipated that the Blue Ridge mine will now produce approximately 80 000 4E PGM ounces in the 2011 financial year, the company said. A company spokesperson told I-Net Bridge that the original production forecast had been for 100 000 ounces and therefore the loss would amount to some 20 000 ounces.
Following the safety review, Aquarius has refocussed its 12 month strategy for Blue Ridge on safe, productive mining with the generation of greater redundancy of mineable reserves.
Although the temporary suspension of mining activities and the review of safety systems and the mine plan will slow the ramp-up of the mine and have a negative impact on production in the short term, these measures will provide for safer and more sustainable output over the long term.
Aquarius CEO Stuart Murray said in a statement that Aquarius considers the safety of its mines to be a primary concern, and the fatalities at the Blue Ridge mine are both unacceptable and deeply regrettable.
"We will do whatever is required to ensure that production at this mine is accomplished as safely and sustainably as is the case at Aquarius' other operations and meets our aim of constantly improving our safety track record. At this stage this means that in the interests of safety it is more prudent to slow the ramp-up of the mine and review certain aspects of the existing mine plan to further conform it to our standards and ensure the ongoing safety of personnel on our mines.
"We expect the ramp-up to take approximately a further 12 months, during which time this mine may continue to be treated as a mine in commissioning and thus revenues, operating and capital costs will be capitalized. The market will be informed of the impact of the mine plan review once this information becomes available," he said.
- I-Net Bridge
