Last Updated : 14 November 2009 at 15:55 IST

Impala Platinum’s production soars

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HARARE (Commodity Online): Impala Platinum, an integrated platinum group metals (PGM), including platinum, palladium, rhodium, ruthenium and iridium as well as gold and associated base metal producer, reported higher production from its mines in Zimbabwe and increased deliveries to Impala Refining Services (IRS), whose refined platinum production jumped 59% compared to the previous quarter.

The miner’s platinum production during the quarter rose 6% to 413,000 oz (ounces), while palladium and rhodium production increase 22% 266,000 oz and 63,000 oz respectively.

According to a press note by the company, the production increases were despite the negative impacts from strikes and safety stoppages, which results in the loss of 75,000 oz at the lease area, where the change in the mining layout in the mechanised sections will result in the loss of another 25,000 oz in the current year. As a result, production guidance for the full year 2010 was lowered by 100,000 oz to 850,000 oz.

Production at the Marula mine, whose output fell by 2,000 oz as a result of a strike, is expected to amount to 85,000 oz in the current financial year and to 100,000 for the full year 2011. Production at Zimplats is expected to reach 170,000 oz and 180,000 oz in the following year.

The Mimosa mine saw a 12% increase in tonnage during the period as platinum in concentrate production amounted to 26,000 oz. The mine is currently operating at a capacity of 100,000 oz per annum.

Refined platinum production at IRS jumped 59% quarter on quarter to 233,000 oz, largely due to increased receipts from Impala’s Zimbabwean operations, Two Rivers, Blue Ridge and Smokey Hills.

Impala said it would prioritize cash preservation after recent improvements in US dollar-based PGM (platinum group metals) prices were offset by the strength of the South African rand. The company’s cash position was reduced to R0.13 billion from R1.36 billion at the end of June after the payout of the final dividend, which amounted to R1.2 billion.