Implats Q1 output plunges

Johannesburg - Impala Platinum Holdings [JSE:IMP] the world’s second-largest producer of the precious metal, said on Thursday that first-quarter gross platinum production declined by 12% to 388 000 ounces due to operational issues and safety-related stoppages.

Palladium production declined in line with platinum output.

Implats said around 8,000 ounces were lost during the quarter as a result of safety-related stoppages.

Implats said output of platinum in matte at its Zimbabwe unit Zimplats rose marginally to 45,000 ounces despite the uncertainties around a drive by the government there to force foreign miners to surrender 51 percent stakes in their operations to local blacks.

Implats said last month it has agreed to turn over a 10 percent stake in its Zimbabwe unit to locals after facing pressure from the government to give up equity or lose out in the state with the world’s second largest platinum reserves.

The 10 percent stake is the first tranche in what is supposed to be a majority stake. Zimbabwe has not provided clear guidelines on how and when it expects companies to comply.

Implats said in August that it was on course to reach platinum output of 2 million ounces by 2014 as new shafts ramp up but before then production would be restrained by aging infrastructure and was seen falling 7.5 percent to 1.7 million ounces over the 2012 financial year.

Implats said first-quarter group unit costs per platinum ounce produced, excluding share-based payments, rose by 10.8 percent due to high wage settlements and steep increases in power prices.

Refiner Johnson Matthey said on Tuesday that Zimbabwe’s total platinum output, including production from Anglo American Platinum, was expected to rise 20 percent this year to 335,000 ounces.