Production at Anglo American Platinum (Amplats) fell two per cent last year, the miner said, citing a "significant" rise in safety stoppages as the main factor.

Refined platinum output slipped to 2.53 million ounces in 2011, the world's largest primary platinum producer revealed as it reported a ten per cent increase in operating profit.

The fall was attributed to the number of safety stoppages, as production was halted 81 times by the South African government - more than twice the number recorded in 2010.

Twelve of the company's employees lost their lives in mining accidents in 2011.

However, Amplats said the effect on production of the stoppages was offset by increased reliability and efficiency of the smelters, which have operated for three years without a major incident.

Despite the fall in production, the miner reported a three per cent rise in platinum sales to 2.6 million ounces.

For 2012, Amplats forecasts refining and selling between 2.5 million and 2.6 million ounces.

Chief executive officer Neville Nicolau said: "We expect 2012 to be a strong year for Anglo American Platinum in which we build upon the momentum we have established between 2008 and 2010."

He added: "We are continuing to work with government and our workforce to implement more effective means of addressing major risks and non-compliance to standards. The journey to zero harm remains our key strategic objective."

Amplats is, however, concerned that the approach to safety stoppages is becoming too restrictive as the South African authorities close down entire mines or shafts rather than just a single operation.

The firm predicts primary production challenges to escalate this year, claiming there is an increased risk of supply disruptions from power shortages, industrial action and safety stoppages in South Africa.

However, Amplats predicts the platinum market will "remain in balance in 2012 due to continued strengthening of autocatalyst demand, resilient jewellery markets and continued investor interest".

Source:

UPDATE 1-Amplats earnings down, sees flat 2012 output (13/02/12)

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