IMPALA Platinum (Implats) reported a one fifth leap in production in the September quarter compared to the June quarter and said it would seek next month board approval for the $260m replacement of reserve ounces at Zimplats.
However, the group’s CEO, Terence Goodlace, had cause to lament three underground fatalities at its 12, 20 and 7 shafts at Impala Rustenburg mine despite a five month-long health and safety awareness programme at the mine.
Commenting in the firm’s September quarter production report, Goodlace said that “… even with all of this health and safety focus” lives were lost in fall of ground, tramming and shaft maintenance accidents.
He said production in the December quarter would normalise due to the continued high level of focus on improving safety in dialogue with the Department of Mineral Resources and AMCU, as well as the resumption of full production at 1 Shaft.
Progress towards the resumption of mining at 14 Shaft was “… on plan and cold commissioning of the conveyor belt and its associated infrastructure in the upper part of the decline section has commenced,” it said.
Implats suffered a fire on January 22 at 14 Shaft which resulted in the death of four employees and also cost the company 50,000 ounces in production.
The event sent the company into a complete re-think of its safety standards and procedures after having spent R1bn on improving them since the appointment of CEO, Terence Goodlace four years ago.
Gross refined platinum production totalled 365,200 ounces, a 20% lift owing to good performances at Marula, Mimosa, Two Rivers, Impala Refining Services (which also smelts third party concentrate) and Zimplats.
A bankable feasibility study for the development of a 2.2 million tonnes a year replacement portal system at Zimplats’ Rukodzi and Ngwarati mines had been completed, the company said.
The $260m project would be submitted to the boards of Zimplats and Implats in November which, if approved, will open up 4.65 million 4E ounces of reserves.
“Preliminary early works related to accessing and excavating the box cut position commenced in the quarter. Full project details will be released once the Implats Board approval processes have been completed,” the company said.
Goodlace announced in May that he intended to relinquish his position at Implats by December. There was no mention by Implats in its production report of a successor.
He is, however, optimistic about the future for the company, especially as market conditions for platinum group metals was due to improve owing to a likely supply deficit.
“I believe the train is coming because of the lack of investment in the platinum industry,” Goodlace said at the company’s annual results presentation on September 1.
“We are not too far from the years 2020 to 2022 when supply from the country will drop off a cliff. I believe the big deficits we are seeing now are going to get worse.
“In the short-term PGM prices will remain subdued but I certainly believe there will be a big surprise in the future,” Goodlace said.
