30th Apr 2009 08:25
Anglo Platinum QUARTERLY REVIEW AND PRODUCTION REPORT
FOR THE PERIOD 1 JANUaRY 2009 TO 31 MARCH 2009
REVIEW OF THE QUARTER
The safety principles and programmes implemented across all the managed operations of Anglo Platinum are showing positive results with a further reduction in the lost time injury frequency rate achieved during the first quarter of 2009 to 1.44 per 200,000 hours worked, compared to 1.52 in the fourth quarter of 2008 and 1.82 in the first quarter of 2008. This was supported by the notable achievement of 7 million fatality free shifts at Union Mine, a mining industry milestone.
Mining operations performed as expected during the first quarter, with equivalent refined platinum ounces from mining and purchase of concentrate activities attributable to Anglo Platinum increasing 19% or 95,900 ounces to 613,400 ounces compared to the first quarter of 2008.
Refined production of 404,000 ounces in the first quarter decreased by 5.7% compared to the first quarter of 2008. Refined production was reduced by shutdowns for furnace maintenance at the Waterval and Polokwane smelters. At the Polokwane smelter, the complete set of furnace lower copper coolers, in service since 2005, was replaced. Higher than normal refined metal stocks at the start of the quarter avoided any disruption of supply to the market.
Rhodium production was higher than the first quarter of 2008 as it has a longer processing time and was therefore not impacted in the first quarter by the shutdown at the Waterval smelter. Palladium and Nickel production were lower in the period relative to the first quarter of 2008 for the same reasons associated with platinum production.
Following the decision in December 2008 to produce 2.4 million ounces of refined platinum in 2009, a number of cost management and value management initiatives were implemented. Labour has reduced by 4,195 since December 2008 in line with the announced reduction of 10,000 employees by the end of 2009. At Mogalakwena, mining output has been reduced by 50%, with full concentrating throughput being maintained from surface ore stockpiles. At Siphumelele Mine's Bleskop shaft in Rustenburg, the process to suspend mining operations has been initiated and unions are being consulted.
Cash operating costs per equivalent refined platinum ounce decreased by over 7% in the first quarter of 2009 compared to the fourth quarter of 2008.
Good progress was made in the period with the efficiency enhancing operational restructuring at the Rustenburg and Amandelbult operations - now five and two separate mines
respectively. The restructuring was undertaken to establish separate entities that are more easily manageable with an increased focus on costs and productivity. Reporting on these separate entities will commence in July 2009 when Anglo Platinum reports on its interim results.
The tables below outline the new names and comprising shafts and the General Managers appointed:
|
Mine / Area |
Rustenburg Shafts |
General Manager |
|
Bathopele Mine |
Waterval shaft |
Christo Marais |
|
Siphumelele Mine |
Bleskop, Brakspruit, & Turffontein |
Ivano Manini |
|
Thembelani Mine |
Paardekraal 1 and 2 shafts |
Tom van der Nest |
|
Khuseleka Mine |
Boschfontein & Townlands |
Tom van den Berg |
|
Khomanani Mine |
Frank 1 and 2 shafts |
Peter van Dorssen |
|
Central services |
n/a |
CJ Labuschagne |
|
Mine |
Amandelbult Shafts |
General Manager |
|
Tumela Mine |
No 1 shaft (West Upper, West Lower) & Central |
Bruce Chantler |
|
Dishaba Mine |
No 2 shaft (East Upper & East Lower) |
Velile Nhlapo |
CAPITAL PROJECTS AND BALANCE SHEET
Capital expenditure for the quarter was R2.3 billion, excluding capitalised interest, 49% lower than the fourth quarter of 2008. Project management and capital expenditure control has intensified since the last quarter of 2008 and continues to be a priority for management. The Company expects to incur R9.1 billion of capital expenditure for the year, excluding capitalised interest. Anglo Platinum is confident that its committed debt facilities are adequate to meet its anticipated funding requirements.
BLACK ECONOMIC EMPOWERMENT TRANSACTIONS
Anglo Platinum expects finalisation of its empowerment deals with Anooraq Resources Corporation and Mvelaphanda Resources Limited with respect to its Lebowa and Booysendal assets respectively in the second quarter of 2009.
GUIDANCE FOR THE BALANCE OF 2009
Anglo Platinum continues to target platinum output of 2.4 million ounces in 2009 and expects the platinum price to continue trading at levels above $1,000 per ounce.
http://www.rns-pdf.londonstockexchange.com/rns/4401R_-2009-4-30.pdf
Johannesburg, South Africa30 April 2009
For further information please contact:
Anna Poulter
+44 (0) 7789 746 126
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