SUPPLIES SUPPLIES, MINING & EXPLORATION Mechanised drilling underground at Anglo Platinum. 120,000 oz, just 4% down on the previous year. At the Bafokeng z Global platinum shipments decreased by 13% to from state stocks fell to just 250,000 oz. As a result, Rasimone Platinum mine (Royal Bafokeng Resources: 67%), 5.64 million ounces, due to a steep decline in output palladium shipments from Russia were at their lowest platinum output fell by 5% to 172,000 oz, but the Mototolo from strike-hit mines in South Africa. level for a decade. joint venture with Xstrata had a record year, with production rising 9% to 119,000 oz. The Kroondal pool and share operation z Platinum sales by South African producers fell by 16% z Shipments of platinum from North American mines (operated by Anglo’s partner Aquarius Platinum) escaped to 4.10 million ounces, a 12-year low. Palladium and declined by 16% to 295,000 oz, but palladium supplies serious interruptions, despite its proximity to the Rustenburg rhodium supplies were also hit by the stoppages, falling were little changed at 905,000 oz. group of mines, and reported a 2% increase in equivalent by 9% and 10% respectively. z Production of pgm from Zimbabwe was affected by refined platinum production, to 213,000 oz. However, the z Norilsk Nickel’s Russian operations reported a 3% decline smelter outages at Zimplats in 2012. As a result, pgm neighbouring Marikana pool and share operation fell victim to in palladium output, to 2.63 million ounces, while sales supplies were unchanged on the previous year. low rand pgm prices and was mothballed in June. On 15th January 2013, Anglo American Platinum announced the results of a review of its mining strategy. The company and Marikana (the latter being operated under a pool and intends to consolidate its Rustenburg assets into three SOUTH AFRICA share agreement with Anglo American Platinum), and halting mining operations (currently five), shutting four shafts and The South African pgm industry was severely hit by processing at its Chrome Tailings Retreatment Plant, a joint reducing production across the Rustenburg mines to between unprotected work stoppages during 2012, with the result venture (JV) with Sylvania and Ivanhoe Platinum. Meanwhile, underlying mining output, was down 8% at 2.22 million ounces 320,000 oz and 350,000 oz per annum going forward. that shipments of platinum fell to their lowest level in more Platinum Australia, which operated the small Smokey Hills last year; this figure includes purchases from third parties, such The planned implementation of the strategic review will than a decade. Supplies would have been even lower were operation on the eastern Bushveld, went into administration, as chrome tailings operations and Xstrata’s Eland Platinum impact production levels this year. Although there is a risk it not for releases of metal from in-process inventories, as while the Canadian company Eastern Platinum scaled back mine, plus output from Unki, but excludes metal processed of some further labour disruption, Anglo expects platinum refineries drew down their pipeline stocks during periods stoping operations at its Crocodile River mine. Anglo American from secondary materials. Refined platinum production output in 2013 to be little changed on last year, at between of mine inactivity. In total, we estimate that the mines lost Platinum has announced a review of its mining strategy, totalled 2.33 million ounces, as metal was released from the 2.1 million and 2.3 million ounces. at least 750,000 oz of platinum production in 2012 due to involving the closure of some shafts in the Rustenburg area processing pipeline during the second half. strikes, both legal and illegal, safety stoppages and mine (see page 15), which is likely to impact supplies in 2013. Production losses were once again concentrated at the Impala Platinum closures. We discuss the chronology of these events and older mines on the western Bushveld, and particularly at the their impacts on the industry in a special feature on South Amandelbult (Tumela and Dishaba) and Union (North and Output of pgm from Impala’s Rustenburg lease area dropped Anglo American Platinum African production on page 17. South) mines, where output fell by 13% and 23% respectively. sharply in 2012, reflecting losses incurred during a six-week The illegal work stoppages mainly hit the older mines on Shipments of platinum by Anglo American Platinum fell by These operations were hit by industrial unrest, which illegal strike, which halted mining between mid-January and the western Bushveld operated by Anglo American Platinum, 17% to 2.17 million ounces in 2012, reflecting significant propagated from the Rustenburg area in early October and early March, and a slow return to normal operations thereafter. Impala Platinum and Lonmin. Worst hit were Impala’s production losses from its western Bushveld operations during was only resolved in mid-November, and by the depletion The poor performance was exacerbated by safety stoppages, Rustenburg lease area, where refined platinum output unprotected strikes that took place between September and of surface sources of pgm, which have been supplementing a lack of ore reserve flexibility and a refinery pipeline lock-up contracted by a third, and Anglo’s Union mines, where there November. This figure includes 62,000 oz of production from underground output at Tumela and Union North. at the year-end. As a result, refined pgm output fell by a third was a 23% decline. There were smaller reductions from the the Unki mine, which we classify under Zimbabwe supplies, Perhaps surprisingly, production at the company’s in 2012, to 628,000 oz of platinum, 353,000 oz of palladium and latter’s Rustenburg and Amandelbult groups of mines, while although the metal is refined at Anglo’s facilities in South Africa. Rustenburg area operations was comparatively lightly affected, 84,000 oz of rhodium. Lonmin reported an 8% fall in output of platinum in concentrate Sales fell below the level of refined production, due to the with total annual output dropping only 8%, even though Impala continues to focus on the development of major from its Marikana operation. suspension of spot sales during the fourth quarter in response these mines were at the epicentre of the illegal strikes, and vertical shaft projects at its Rustenburg lease area, the In contrast, with the exception of Atlatsa Resources’ Bokoni to disruption at the mines. In total, 160,000 oz of platinum were experienced prolonged disruption between September and most advanced of which – 20 shaft – began the build-up of mine, which experienced a prolonged illegal stoppage, mining added to Anglo’s refined inventories during 2012. November 2012. This was principally because of a strong first underground production in 2012. The board of Impala has operations on the eastern Bushveld and the Platreef were Equivalent refined platinum production, an indicator of half performance and the production ramp-up at the recently approved a R2.1 billion project, planned for completion in 2019 comparatively unaffected by the turmoil. Indeed, the Two reopened Khuseleka 2 shaft. to replace the final metals processing facility at its precious PGM Supplies: South Africa Rivers and Mototolo mines both reported record platinum ’000 oz Some of Anglo’s joint venture and associate mines were metals refinery. output in 2012. Supply 2010 2011 2012 also affected by industrial unrest, but to a much lesser degree, The company has also reactivated the development of the Low rand pgm prices also contributed to the reduction in Platinum 4,635 4,860 4,095 and the impact on production was generally limited. The Leeuwkop mine, which had been mothballed in the wake of supplies, with three mines and one tailings reprocessing plant Modikwa mine, a joint venture with African Rainbow Minerals, the global financial crisis. This R9.8 billion project involves the Palladium 2,640 2,560 2,330 ceasing operations during the year, and others rationalising experienced a 27-day legal wage strike during the first half construction of a vertical shaft to provide access to the reef at Rhodium 632 641 576 their activities in order to conserve cash. Aquarius Platinum of 2012, losing an estimated 11,000 oz of platinum output, depths of between 1,000 and 1,800 metres. On completion, announced that it was mothballing two of its mines, Everest but nevertheless reported a full year production figure of the mine will extract 2.16 million tonnes of UG2 ore annually, page 14 Platinum 2013 Platinum 2013 page 15 SUPPLIES SOUTH AFRICAN PRODUCTION IN 2012 Hauling ore at Anglo Platinum’s Mogalakwena mine. 2012 saw exceptional disruption to platinum mining in South Africa. At least quarter. Meanwhile, total refined platinum production fell 6%, aided by a release of 31,000 oz of the metal from in-process 750,000 oz of production was lost to strikes, safety stoppages, and mine closures. inventories. Sales of platinum totalled 717,000 oz, a drop of 4%. All three major producers saw the shutdown of their main In September, Anglo suspended its Rustenburg operations Platinum shipments are likely to fall this year, as pipeline production sites on the western Bushveld for periods of due to concerns about intimidation of mine workers. Although restocking offsets an increase in mine output: Lonmin expects several weeks at a time. Impala Platinum’s Rustenburg the resumption of mining was announced on the 18th, to sell 660,000 oz of platinum in the year to September 2013. lease area was the first to be affected, when rock drill many miners failed to report for work, and by early October, Thereafter, production and sales are planned to increase to operators (RDOs) embarked on an unprotected illegal absenteeism was also affecting the Amandelbult and Union at least 750,000 oz of platinum annually in the 2014 and 2015 strike in January, leading to the cessation of mining for six mines to the north.