[miningmx.com] – PLATINUM miner Lonmin said the ramp-up of its operations following a five-month strike is “progressing better than planned’.
The miner previously said it will reach 80% of normal production by the end of September, and a full steady state by the last quarter of 2014. It will update the market on its ramp-up in due course, it said.
Lonmin said in July it expected to produce 340 000 ounces of metals in concentrate for the financial year to end September, while sales are expected to total 420 000 ounces.
It forecast sales of 750,000 platinum ounces for the year before the strike started in January. Unit costs were expected to increase by 60% per platinum group metal (PGM) ounce.
Denying reports that it plans to cut as many as 5,700 jobs and close up to six of the company’s 11 shafts, the board said its “immediate focus following the five-month strike is to achieve a safe ramp up of production in order to rebuild the business and restore profitability. Crucial to the process are safety, containing costs and maximising productivity.’
“No decisions, about the size and shape of any restructuring of the business, have been made,’ the board said in a statement.
Impala Platinum, the world’s second-biggest miner of the metal, is expected to update the market on Thursday on its restructuring plans with the release of its annual results.
The group said it expects earnings per share for the year ended June to be between 98% and 100% lower than the previous year, mainly due to the strike that halted its Rustenburg operations.
