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RBPlat blames safety stoppages for 10% output slump in Q1

RBPlat blames safety stoppages for 10% output slump in Q1

Photo by Duane Daws

17th April 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Royal Bafokeng Platinum’s (RBPlat’s) platinum production for the quarter ended March 31 dipped by 10% year-on-year, following a slow start in January after the December break and several safety stoppages in January.

Section 54-related stoppages accounted for production losses of 35 416 t for the period, compared with 19 654 t for the first quarter of 2013.

Platinum group metal (PGM) ounces-in-concentrate declined by 6% compared with the first quarter of 2013 and was attributed to 14% lower volumes treated as a result of the lower tonnages being delivered to concentrators and a 9% increase in the platinum built-up head grade.

This head grade resulted from a plant clean-up following the scheduled Christmas break and adjustments for ounces delivered to platinum producer Anglo American Platinum in the last quarter of 2013.

The built-up head grade was expected to return to levels of between 4.25 g/t and 4.3 g/t PGM for the remainder of 2014.

Production in April had, thus far, been “encouraging” and the company was expecting an improved operational performance for the remainder of the year.

Cash operating cost per platinum ounce produced increased by 8.6% to R12 853 when compared with the first quarter of 2013, with the key contributing factors being 6.4% less platinum produced as a result of lower milling volumes, offset by higher grades and an increase in North West-based Bafokeng Rasimone platinum mine’s (BRPM’s) cash operating costs of 2.2% to R502-million.

The cash cost per tonne milled increased by 17.9% to R1 078 compared with the corresponding quarter in 2013, owing to the lower production tonnages delivered in January and February.

Managing cost increases to below mining inflation rates remained a key focus area for the company.

Capital expenditure (capex) for the quarter was 51% higher, at R306.4-million, compared with the first quarter of 2013, as expansion capex increased by 72% to R249.7-million, in line with the acceleration of the construction schedule for the Styldrift 1 project, in the North West.

Replacement capex reduced by 14% to R32.5-million, owing to mining-related savings on BRPM’S Phase 3 decline extension project.

Stay-in-business capex increased by 20% to R24.3-million and remained within RBPlat’s target range of between 6% and 8% of operating costs.

PROJECTS UPDATE

At Styldrift 1, sinking of the main shaft had progressed to a depth of 708 m and the service shaft to 723 m.

The key focus of work on the project was the remaining lateral development of the main shaft required to sink the shaft to its final depth of 758 m below collar.

Overall lateral development was progressing ahead of schedule, with 527 m achieved during the quarter against a planned 425 m.

Project capex for the quarter was R242.4-million, which was in line with the progress made, while total expenditure for the project for the year was forecast at R1.9-billion.

At the end of the quarter under review, the project-to-date commitment was R3.6-billion and expenditure to date had been R2.7-billion.

The project was 44.67% complete, which was 1.61% ahead of the cumulative plan of 43.06%.

Meanwhile, BRPM’s Phase 3 project, which would extend the life of the Merensky reef at North shaft, was 61% complete and 6% ahead of schedule.

The project remained below budget, with expenditure for the quarter of R32.46-million and R617.8-million for the project to date.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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