Anglo-American platinum industry output of refined platinum group metals fell 49% in the fourth quarter compared with the same period last year

In the fourth quarter of 2020, Anglo-American platinum miner (Amplats) production of platinum group metals extracted from its own raw materials fell 49 per cent year-on-year to 673000 ounces.

Miners attributed the reduction to the early closure of the (ACP) B phase of the Anglo-American platinum converter plant on November 5 to ensure a continuous safe operating environment, protect employees and protect the integrity of the plant.

The converter plant at (Waterval) in Waterwar, Rustenburg, is a key part of the Anglo-American platinum industry's platinum group metals production process for the processing of converter matte at the company's smelter.

Phase An and B units were initially closed in March 2020 after the explosion at the converter plant. Operations then resumed, but Amplats announced in November that it would fully rebuild the phase B unit of the converter plant after a series of leaks that led to further closures throughout the year.

At that time, the Phase A unit of the Anglo-American Converter Plant was also being rebuilt.

On November 24th, the reconstruction of the, ACP A unit was successfully completed ahead of schedule, and on December 7th, the first batch of converter sulfur was sent to the base metal refinery for further processing.

Anglo-American Platinum said: "the Phase A unit of the Anglo-American converter plant continues to perform well and is in line with expectations of normal operation. The Anglo-American Converter Phase B unit is currently undergoing the expected full reconstruction, which is expected to be completed in the second half of 2021, with a projected capital cost of 550 million to 600 million South African rand. "

The shutdown of the Anglo-American converter plant in 2020 led to an increase in work-in-process stocks of about 1 million ounces of platinum group metals, which are expected to be released within the next 24 months.

Meanwhile, refined platinum production fell 53 per cent to 296400 ounces in the fourth quarter, while refined palladium production fell 48 per cent to 206800 ounces.

In the fourth quarter, production of refined platinum, palladium, rhodium and gold (4e) fell 16 per cent to 146500 ounces due to reduced investment and disruptions at the Anglo-American converter plant.

Mine performance

According to the Anglo-American platinum industry, total production of platinum group metals fell 7 per cent in the fourth quarter from a year earlier to 1.08 million ounces, while platinum and palladium production fell 6 per cent to 497800 ounces and 338400 ounces, respectively.

Mogalakwena's platinum group metal production fell 3 per cent to 306700 ounces, as a result of community unrest, the inability of miners to work, reduced processing shifts and small operational problems at the northern concentrator, which affected continued strong operating performance, all of which led to a reduction in processing volume.

Platinum production fell 5 per cent to 129500 ounces and palladium production fell 3 per cent to 141700 ounces.

Platinum group metal production at the (Amandelbult) mine in Armandale Bolt fell 22 per cent year-on-year to 185500 ounces as upper Tumela vein and surface production approached mine life.

Platinum production fell 22 per cent to 93400 ounces and palladium production fell 21 per cent to 44000 ounces.

The output of platinum group metals in Mototolo, increased by 4% to 69800 ounces, due to improved operating time and plant stability of the concentrator, as well as an increase in the selection grade accumulated by 4e, resulting in an increase in production capacity. Platinum production increased by 4 per cent to 32100 ounces, while palladium production increased by 6 per cent to 20200 ounces.

Unki's production of platinum group metals increased by 7 per cent to 55800 ounces, mainly due to the high selection taste and production of 4e. Platinum production rose 6 per cent to 24600 ounces and palladium production increased 10 per cent to 22000 ounces.

Meanwhile, co-production of platinum group metals fell 14 per cent to 198000 ounces, platinum production fell 13 per cent to 90,200 ounces and palladium production fell 17 per cent to 56200 ounces.

"taking into account the continuing impact of the epidemic, our production performance is strong. Due to the implementation of epidemic prevention measures and the normal development of daily work, we reached 100% normal production capacity at the end of this quarter. "

Natascha Viljoen, Chief Executive Officer of Anglo American Platinum, commented: "as part of the epidemic prevention, we have taken additional measures to test and screen employees returning from downtown areas after their December leave. The second wave of outbreaks has led to an increase in employee infection rates; however, we have passed the high outbreak period and are beginning to see a decline in active cases. As a result, our current operating capacity is about 90% of normal capacity. "