[miningmx.com] – IMPALA Platinum (Implats) is to keep its Rustenburg mine shut until the safety of employees seeking a return to work – with whom the firm would continue to communicate – could be guaranteed.
Commenting in its third quarter results, in which some 131,000 ounces of platinum production was lost owing to the strike, Implats also said that no salary increases were given to management while CEO, Terence Goodlace, had not accepted bonuses or any share option awards since joining the company in July 2012.
It also made no mention of plans to cut staff once the strike had been resolved although its current cash preservation strategy meant that there had been a 70% to 75% reduction in total cash expenditure.
Implats said the re-opening of the Rustenburg mine “… will only be considered when the risk of violence and intimidation can be eliminated”. This is in contrast to Lonmin which re-opened its Marikana mine, a development that led to incidents of violence, and some deaths, as a portion of the workforce attempted to return to work.
“Impala remains hopeful that Association of Mineworkers & Construction Union (AMCU) will moderate their demands and accept the fair wage offer and allow employees to return to work,” it said.
Some 246 000 oz of platinum production worth R5.4bn in revenue, had been lost to date. Employees have forfeited wages of approximately R1.4bn, said Implats will described the strike, now entering its 17th week, as “a human tragedy”.
From the nine month period, Implats’ gross refined platinum production declined by 18% to 992 000 oz compared to 1.2 million oz in the corresponding period in the prior year. Implats’ Rustenburg mine accounts for about 45% of total group production.
Output at Implats’ other mines during the quarter – which includes the Mimosa Platinum Mine held in Zimplats, Marula and its refining services (IRS), remained stable.
