STEVEN SWINDELLS AND OWN CORRESPONDENT, Johannesburg | Thursday
PLATINUM output at industry giant Anglo American Platinum (Angloplat) may fall below two million ounces this year because of a prolonged miners’ strike and earlier flooding, analysts said this week.
But the world’s largest platinum producer is still expected to post record financial results for the year on the back of strong global platinum group metal prices and renewed weakness in the rand against the dollar, they said.
National Union of Mineworkers (NUM) members marched to the offices of Angloplat on Wednesday to press for a 10% wage rise – a demand that has led them to down tools for nearly a month.
The strike, which the NUM says involves 10000 of its members, has stopped underground blasting at important mines and forced Angloplat to draw on ore stockpiles to supply its refineries and smelter.
”The strike must be beginning to bite now and if it goes on much longer we’re going to see reduced production. I doubt if they are going to make two million ounces this year,” said Keith Bright, analyst at Fedsure Asset Management.
Angloplat produced a record 2.022m ounces of platinum and 1.017m ounces of palladium in 1999, boosting net profits 83% to R2.57bn.
Although the strike has not affected vital refineries or export consignments, the industrial action could not have come at a worse time for the mining giant after three months of flooding earlier this year that resulted in the loss of 67 000 ounces of the metal.
”The strike has marginally impacted production at the mines, which are operating at 70-80% of capacity, but processing is unaffected,” said Angloplat spokesman Mike Mtakati. – Reuters