[miningmx.com] — ASX-listed Platinum Australia’s (PLA) Smokey Hills
mine, in the Eastern Limb of the Bushveld complex, is facing an uncertain future
following the group’s decision to do “an urgent review’ of the operation.
In an announcement released on Monday, the group said a host of difficult operating
conditions have continued to plague the mine; including a Section 54 safety
stoppage that lasted four days. As a consequence, the tonnes mined for June were
expected to be 29,000t against planned output of 47,980t.
“In light of the above and current low PGM prices, the company has embarked on an
urgent review of operations to determine the future strategy and viability of the
mine, given current commodity prices are not expected to improve in the medium
term,’ read a company statement.
“The review is expected to be complete within a week and a further announcement
will be made at that time.’
Trading in PLA’s shares have also been suspended.
PLA was seemingly on the recovery path following a disastrous 2011, during which
the company failed to meet production targets and had to raise A$3.6m in December
to stay afloat. In January, PLA dismissed Smokey Hills’ second contract miner in just
over a year, having decided to manage the asset itself. In a production update in
March, PLA said the mine had recorded significant improvements in almost all areas
of production as the asset started to exceed 80% of full production capacity.
