Anglo American battered by platinum strike

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The mining company, which released results on Thursday, reported that total equivalent refined platinum production decreased by 40 per cent to 358 ounces for the second quarter ended 30 June 2014, due to the industrial action. In the second quarter, the total platinum ounces lost due to the same reason were 239 ounces.

“The total lost production from the industrial action during in the first half of 2014 was 424 ounces and a further 16 ounces has been lost during the ramp up of operations as “safe return to work” procedures are undertaken before mining can commence,” Anglo American Platinum said in a statement.

“In addition, second quarter production was 43.7 ounces less due to the consolidation of mine at Rustenburg and Union as part of the restructuring during 2013.”

(READ MORE: Anglo American ups production despite industry volatility)

[DATA AMS:Anglo American Platinum] is the world’s largest platinum producer, and is headquartered in Johannesburg, South Africa.  

While the five-month long platinum strike affected the firm’s Rustenburg, Amandelbult and Union mines in South Africa, production at the Mogalakwena and Unki mines or were unscathed.

Production for the Mogalakwena mine increased 23 per cent to 95.6 ounces, and production for the Unki mine remained constant at 15 ounces.

Gross refined platinum production decreased to 421 ounces for the quarter ended 30 June 2014 from 582 in the previous comparative period. Gross refined palladium production also decreased to 295 ounces from 320 ounces in 2013, and gross refined rhodium production fell to 49 ounces from 70 ounces in the previous comparative period.

Gross refined gold production however grew to 27 ounces for the period under review from 16 ounces in 2013.

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“Underground mining performance reflected the effect of the industrial action. At Amandelbult, output decreased to 14 ounces, a decline of 84 per cent; Rustenburg, excluding Western Limb Tailings Retreatment, decreased to 13 ounces, a decline of 91 per cent,” Anglo American explained.

“Union fell to four ounces, a decline of 91 per cent. Production was also impacted by the shaft closures at Rustenburg and Union mines.”