/ 26 October 2004

Strike affects Anglo Platinum output

The world’s biggest platinum miner, Anglo Platinum, said on Tuesday that the recent strike at its operations has resulted in a reduction in mining output equal to about 50 000 ounces of refined platinum and a proportionate reduction of associated metals.

Members of the National Union of Mineworkers the Togetherness Amalgamated Workers Union of South Africa and the National Union of Metalworkers of South Africa downed tools at the group’s mines for almost a fortnight earlier this month over a wage dispute. They returned to work after management revised its wage offer.

Meanwhile, the group also announced on Tuesday that smelting at its Polokwane smelter will be resumed next month. Anglo Platinum announced on September 10 this year that it had suspended smelting operations at its Polokwane smelter to examine and repair elements of the smelter cooling system.

On Tuesday, it said the manufacture and installation of cooling elements is in progress and management expects smelting at Polokwane to resume during the last week of November.

But it added: “Current estimates indicate that it may not be possible to smelt all stockpiled concentrate by December 31 2004.”

It said that as a consequence of the largely fixed cost base of mining operations, the implementation of the announced wage settlement, and lower mining production resulting from the strike, the company’s increase in unit cash operating costs will exceed CPI in 2004.

“In addition, the company’s refined platinum production for 2004 is expected to be 2,4-million ounces.” — I-Net Bridge