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Anglo Pt cuts 2007 platinum output by 15,000 oz Posted: Mon, 18 Jun 2007 [miningmx.com] -- ANGLO American CEO Cynthia Carroll's push for improved safety at the company's operations can be seen behind Anglo Platinum's shut down of its Rustenburg section for a week at a cost of up to 15,000 refined platinum ounces. Five people have been killed at Rustenburg in the past two weeks, bringing to 12 the number of deaths at the section this year, prompting Anglo Platinum to suspend underground production in a review of its safety measures. Carroll, who took over the helm of one of the world's largest resources companies in April, sees her appointment as a catalyst for change within the company. Anglo owns 75% of Anglo Platinum. "As I have consistently emphasised publicly, achieving a dramatic improvement in the Group’s safety performance is an overriding priority in the programme of change that we are taking forward within Anglo American," Carroll said. "The suspension reinforces our commitment to safety and makes clear that we will take the measures necessary to deliver on that objective," she said. Anglo Platinum expects this year's production to be reduced by between 10,000 and 15,000 ounces of refined platinum and the proportionate reduction of associated by-products because of this suspension of Rustenburg operations. Anglo Platinum had forecast its 2007 output at between 2.8 and 2.9 million ounces of refined platinum. The other metals coming from Rustenburg include nickel and rhodium, both of which are at high price levels. One analyst calculated that at the upper limit it would cost Anglo Platinum about R280m in lost revenue for the year, which could be offset to the tune of R190m by an anticipated $20 increase in the platinum price later this year. It is debatable whether the suspension of underground production at Rustenburg for five to seven days and staggered over five weeks from 22 June was directly instigated by Carroll or if it was an internal, jointly driven process. However it must be remembered that Carroll brings with her a North American mindset towards safety, having headed Alcan's Primary Metal division. "Despite the initiatives already in place, in consultation with Anglo American, management has decided to take immediate action. Management believes that the appropriate action must be to suspend production," Anglo Platinum CEO Ralph Havenstein said. Anglo Platinum has in previous years before Carroll's involvement with Anglo suspended production at both its Amandelbult and Union sections to address safety issues, said company spokesman Trevor Raymond. "Carroll might have had a direct call to Anglo Platinum, I'm not sure. But the number of people they've basically killed in a short space of time, even without Cynthia Carroll, they would have had warning bells going," said the analyst. "It's not the first time Anglo Platinum has suddenly shut down production to fix things up. It happens when there's an extreme pick up in deaths." The shut down would serve to shake up the workers and readjust their focus on safety by reducing their performance bonuses and putting them through revised safety programmes. South Africa's platinum sector recorded a 21% reduction in the fatality frequency rate in 2006. The domestic mining sector has set itself the target of aligning its safety record with that of its North American peers by 2013, a tough ask given the depth at which many mines operate compared to their international counterparts. Click Here to subscribe to our daily newsletter
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