Anooraq Resources revealed yesterday (21st June) that it has witnessed a production increase at its flagship Bokoni platinum mine.

The Canadian miner has been struggling under pressure from unions in South Africa and completed the transferral of 374 employees as part of a labour restructuring programme.

As a result of the shift, which was finalised in the second quarter, the company has seen output start to increase since April 2010, while unit costs have also declined.

"Management is confident that the company will meet its first cost-cutting target of R905 per tonne milled by June, as previously stated," read an Anooraq statement.

"Subsequent to the labour restructure, vamping operations have also started at Bokoni and production from vamping activities should increase to about 6 000t/m by the end of the year."

The restructure, which affected 840 employees, saw the introduction of 11 new stoping teams, taking the total from 70 to 81, with a further 19 expected to be added before the end of the 2010 financial year.

Anooraq also revealed that it expects its second-quarter pgm production to be at least 15 per cent higher than for the previous three-month period.

Meanwhile, production at the firm's new Brakfontein Merensky shaft is on the rise and could double from Q1 to the end of Q4 by reaching a total of 30,000 tonnes per month.

The operation as a whole is predicted to achieve a steady-state production of 120,000 tonnes per month.

Anooraq currently controls the third-largest pgm resource base in South Africa.

Sources:

Anooraq sees increased production at Bokoni mine (21/06/10)

Anooraq says Bokoni labour restructure paying off/Anooraq's concentrator plant (21/06/10)

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