National
Striking miners impact Anglo American results─── 10:51 Thu, 24 Apr 2014
Johannesburg - The journey to zero harm continues and improvements to safety performance were realised in Q1 2014 with zero fatalities. The Lost Time Injury Frequency Rate (“LTIFR”) at managed operations also showed an improvement to 0.55 in Q1 2014 from 1.09 in Q1 2013 (per 200,000 hours worked).
Total equivalent refined platinum production (equivalent ounces are mined ounces expressed as refined ounces) decreased by 39% to 357 koz, compared to 583 koz in Q1 2013.
Production from own operations and the Western Limb Tailings Retreatment plant (“WLTR”) was 167 koz, a 57% decrease. This was due to the industrial action from the Association of Mineworkers and Construction Union (“AMCU”), which commenced on 23 January 2014, and through placing mines on care and maintenance. The industrial action continued through the remainder of Q1 2014 and is on-going.
The industrial action has not impacted production at Mogalakwena and Unki mines. Production at Mogalakwena increased by 3% due to higher achieved 4E(1) built-up head grade(2) and through the mining productivity improvement programs introduced during 2013. Unki improved production performance by 4% due to higher volumes delivered to the concentrator and throughput at the mills.
Processing operations have not been affected by the industrial action. Refined platinum production totalled 435 koz, in line with production in Q1 2013. However as mined production reduced, total refined production was supplemented by a drawdown of pipeline inventory. As a result, sales to customers have continued at normal levels, supplemented by refined platinum stock.
Total equivalent refined platinum production (equivalent ounces are mined ounces expressed as refined ounces) decreased by 39% to 357 koz, compared to 583 koz in Q1 2013.
Production from own operations and the Western Limb Tailings Retreatment plant (“WLTR”) was 167 koz, a 57% decrease. This was due to the industrial action from the Association of Mineworkers and Construction Union (“AMCU”), which commenced on 23 January 2014, and through placing mines on care and maintenance. The industrial action continued through the remainder of Q1 2014 and is on-going.
Rustenburg, Amandelbult and Union are the operations most affected by the industrial action and production decreased by 84%, 75% and 86% respectively.
In Q1 2014, 185 koz of platinum production has been lost as a result of the strike from all operations. In addition, the impact of placing Khomanani Mine, Khuseleka 2 shaft and Union North Mine declines on long term care and maintenance in August 2013, resulted in a decrease in production of 43 koz.
The industrial action has not impacted production at Mogalakwena and Unki mines. Production at Mogalakwena increased by 3% due to higher achieved 4E(1) built-up head grade(2) and through the mining productivity improvement programs introduced during 2013. Unki improved production performance by 4% due to higher volumes delivered to the concentrator and throughput at the mills.
The Joint Venture (“JV”) operations have also been largely unaffected by the industrial action, with the exception of Modikwa which experienced a one week strike before a new wage agreement was signed with the National Union of Mine Workers (“NUM”).
Production from JVs and associates (mined and purchased) increased by 5% to 183 koz, with good performance from Kroondal due to operational efficiencies. Bokoni also performed well, with production up by 25% compared to Q1 2013 due to the commencement of the mining of the open-pit in June 2013.
Processing operations have not been affected by the industrial action. Refined platinum production totalled 435 koz, in line with production in Q1 2013. However as mined production reduced, total refined production was supplemented by a drawdown of pipeline inventory. As a result, sales to customers have continued at normal levels, supplemented by refined platinum stock.
Refined production of rhodium increased by 7% whilst refined production of palladium decreased by 3%. This variance was due to a different source of feed as certain mines’ supply was impacted by the industrial action and the different processing times of the metals.
Nickel production increased by 48% as production in Q1 2013 was impacted by technical challenges, and good progress has been made in the ramp up of production in the nickel tank house.
In respect of the outlook for 2014 as a whole and taking into account the production lost to date, full year production is expected to reduce to approximately 2.1Moz, with potential for further downside revisions from the ongoing industrial action.
Previous guidance for 2014 was 2.3 Moz to 2.4 Moz. Sales expectations are unchanged while cost indications will be reviewed only when the industrial action has been resolved. - Statement supplied
