Aquarius Platinum has dismissed suggestions that a shock new mining directive could heavily impact production at its two biggest facilities in South Africa.

Last week, all companies using mechanised bord-and-pillar mines in the North West region of the country were told to reduce bord widths in their shafts from 10m to 6m.

The Inspector of Mines stated that extraction rations should be restricted to 75 per cent and that prominent geological features should be supported by pillars.

In addition, the directive urged firms to box roadways in one direction and to ensure the orientation of leads and lags between headings are aligned to optimise ventilation.

The changes will affect Aquarius' Kroondal and Marikana mines and Liberum Capital has suggested that this could see the firm's pgm output cut by between 20 and 25 per cent.

However, Gavin Mackay, a spokesman for the world's fourth-largest platinum producer, refuted those claims, indicating that such an estimate is "way too high".

"It really has not been possible to even work out what the impact will be," he added in an interview with Reuters.

Aquarius has now lodged an appeal against the directive and will present a number of alternative strategies to law-makers today (19th July).

The rule changes follow a fall-of-ground incident at Marikana which killed five workers and are also designed to prevent rockfalls and rockbursts at metalliferous mines.

However, Aquarius does not believe the move will increase safety, instead stating that it will have a "detrimental" financial effect on mines using the bord-and-pillar method.

"We are currently assessing the impact and engaging with the Department of Mineral Resources on the issue, but safety has to come first in everything we do," Anna Mulholland, Investor Relations Manager at Anglo Platinum, told Mining Weekly Online.

Aquarius has a 50:50 partnership with Anglo Platinum, which is the world's largest producer of the precious metal, for the Kroondal and Marikana mines.

Sources:

Aquarius appeals new South African mine safety directive (19/07/10)

Aquarius says too early to assess mining directive (19/07/10)

Mine safety crackdown dents Aquarius Platinum (16/07/10)

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