daniel chigunwe
Business Writer
Anglo American Platinum Limited’s local unit, Unki Mine recorded platinum group of metals (PGM) production for the second quarter to June 30, 2023 went down 11 percent to 59 000 ounces against the prior period, weighing the group’s overall performance.
The group attributed the decreased production to mining through planned higher internal waste areas. At Unki, platinum and palladium went down 8 percent and 11 percent respectively during the quarter under review. According to the Group, 4E built-up head grade fell 11 percent during the review period.
However, for the half-year period, PG production at Unki improved by a marginal 2 percent to 121 500 ounces compared to 119 600 ounces during the same period in 2022.
The declines experienced at Unki weighed on Anglo’s total performance as the group’s total PGM production was 9 percent lower compared to the prior period.
Anglo said production was also impacted by short-term operational challenges and infrastructure closures at Amandelbult as well as expected lower grades at Mogalakwena.
“Despite mining through higher internal waste areas, Unki continues to deliver a stable tonnes output along with Mototolo,” said Anglo American Platinum chief executive officer (CEO) Natascha Viljoen, in a performance update.
According to figures from the group, PGMs production from own-managed mines decreased by 10 percent to 526 700 ounces mainly due to Amandelbult short-term operational challenges which have since been mitigated and 2022 planned infrastructure closures, expected grades from Mogalakwena and the impact of Eskom load-curtailment.
Refined PGMs production (owned production, excluding tolling) decreased by 13 percent to 1 073 800 ounces as a result of planned asset integrity work, lower metal-in-concentrate and the impact of Eskom load-curtailment.
The mining operation has been severely affected by power outages experienced in that country, which impacted both concentrators and smelters.
This resulted in increased work-in-progress inventory of c.38 900 PGM ounces for the period. PGMs sales volumes (from production, excluding sales from trading) decreased by 8 percent to 1 108 700 ounces due to lower refined production. Despite the challenges, the group still maintains its production forecasts for the year of 3,6 million to 4 million ounces.
Unit cost per PGM ounce produced is anticipated to be at the upper end of the range considering exchange rate volatility, load-curtailment and continued inflationary pressure.
Guidance for the unit cost per PGM ounce produced is R16 800 to R17 800.
“While we continued to manage heightened Eskom load-curtailment, it impacted 29 production days for the quarter contributing to a build-up in work-in-progress inventory of c.38 900 PGM ounces.
“We remain on track to achieve our 2023 guidance, with a strong focus on demonstrating our resilience through safe, stable, and capable operations for the remainder of the year,” said Viljoen.
Bongani Ndlovu