Anooraq Resources has blamed a lack of mining flexibility and safety stoppages for a drop in platinum group metal (pgm) production.

The Canadian mining firm said output of 4E pgms fell to 22,173 oz in Q1, down 28 per cent from the 30,776 oz mined in the last three months of 2010.

Anooraq said this was a result of safety stoppages, the impact of the slow start-up after the Christmas holidays and continued lack of mining flexibility.

Platinum accounted for the bulk of the South Africa-focused miner's output, contributing 58 per cent of total production, followed by palladium (16 per cent), nickel (11 per cent) and rhodium (eight per cent).

Platinum production was down 29 per cent on the quarter to 12,136 oz, which represents a 15 per cent year-on-year fall.

Output of palladium declined 27 per cent from Q4 2010 and 19 per cent year-on-year to 7,987 oz.

Rhodium output fell 23 per cent quarter-on-quarter and 20 per cent from Q1 2010 to 1,295 oz.

At the same time, US$ pgm basket prices increased by 14 per cent, the company said.

Anooraq also said it is in talks with Anglo Platinum about a potential deal on the Bokoni mine in South Africa.

Harold Motaung, president and chief executive of Anooraq, said Bokoni has faced "challenges" in the first quarter which have impacted on the company's short-term performance.

However, he stressed that opportunities exist for the mine that could bring benefits in the medium and long term.

Mr Motaung explained that safety-related stoppages imposed by the South African Department of Mineral Resources effectively reduced production shifts for the quarter by ten per cent.

"The most significant issues facing the Bokoni operations right now are low operating efficiencies and the consequent lack of volume throughput," he added.

"Critical to this is the much-needed development to create mining flexibility, the lack of which continues to hamper our production output."

Mr Motaung said the target for Bokoni remains 17,600 4E pgm ounces per month by 2014.

Source:



UPDATE 1-Anooraq Resources in talks with Anglo Platinum over possible deal (13/05/11) 

© Adfero Ltd