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The world’s largest supplier of platinum said production of the expensive material used in reducing carbon emission for the current year will be lower than previously estimated as work stoppage that hit the group’s mining operations in South Africa took a chunk of its production for the third quarter of the year and in October.
In the third quarter report, Anglo American disclosed it lost about 42,000 ounces of equivalent platinum during the July to September period, 3,000 ounces more than what the company disclosed three weeks ago when it dismissed over 12,000 employees who participated in the industrial action.
All About Platinum
The figure is equivalent to 4,500 ounces a day starting 12th September and Anglo American said a further 96,000 ounces were lost during the period between 1st and 24th October, moving the company to revise its annual target for the year of between 2.2 and 2.4 million ounces.
Despite the loss, total platinum production from five mines in the Rustenburg district, the centre of the industrial action by employees against the world’s top three platinum producers, only declined by 0.3% compared to the same period a year ago to 148,100 ounces and was still up by 2% on a quarterly basis.
On the other hand, equivalent refined platinum was down 6% from last year’s as the grades declined from the ores mined in the company’s two other mines. Equivalent platinum produced was 626,000 ounces compared with last year’s 667,000 ounces.
Platinum production in the aggregate increased by 2,000 ounces to 649,000 ounces but is down 8% year to date at 1.675 million ounces compared to last year’s 1.820 million.
Anglo American owns 80% of Anglo American Platinum Limited or Amplats, which operates 10 mines, five of which is located in the Rustenburg section, 85%-controlled Union mine and a 50-50 joint venture on two other mines, all located in the Bushveld complex, the world’s richest platinum and PGE resource.
Solid Peformance
Elsewhere, the global mining firm – of the world’s largest – said five other commodities it extracts have seen increases in production numbers, with only platinum and diamond declining.
The lost production as a result of the labour unrest at Anglo American’s iron ore business will reflect in the last quarter. Meanwhile, the 65.2%-owned Kumba Iron Ore mine achieved a record production of 12.5 million tonnes.
“Solid operational performance with production increases across five of the seven commodities,” Anglo American said, referring to iron ore, metallurgical coal, thermal coal, copper, and nick production.
Shares of the FTSE 100 gained 15.5 pence, or 0.8% of yesterday’s share price, to £18.93, but still well below the £29.10 it achieved within the 52-week period ending today.
