Aquarius Platinum says production in the six months to December 2011 fell 16 per cent from the same period a year before, because of a combination of safety stoppages and operational issues.

Releasing its full half-year results, the miner said output slipped from 456,380 to 384,731 platinum group metal (pgm) ounces.

It blamed temporary operational issues and a "significant increase" in Section 54 safety stoppages imposed by the regulator in South Africa, currently an industry-wide issue.

Production attributable to Aquarius fell by 14 per cent to 215,453 pgm ounces for H2 2011, down from 250,972 oz a year before.

Output attributable to Aquarius was down at all operations except Mimosa and Platinum Mile.

Aquarius said production at all South African mines was negatively affected by the industry-wide increase in Section 54 safety stoppages.

Production at Kroondal and Marikana was further affected by implementation issues related to the new support regime.

Everest production was hit by "industrial relations problems" and the ongoing poor ground conditions on the eastern side of the mine.

The Mimosa mine in Zimbabwe, which Aquarius owns jointly with Impala Platinum, continued to produce at capacity and deliver strong results.

Operations at Blue Ridge remained suspended for the entire six-month period, while Everest is under review and will be optimised to produce 10,000 pgm ounces per month for the next 12 to 18 months.

Aquarius chief executive officer Stuart Murray said the results reflect "difficult operating and trading conditions" in southern Africa, highlighting in particular the increase in application of Section 54 stoppages.

While Mimosa performed well, he said "increased royalties and mineral lease /ground rent charges are damaging [the mine]".

"Our management continues to engage the appropriate departments of the governments of both jurisdictions in order to mitigate these impacts and safeguard our business as best we can," Mr Murray said.

Source:

Aquarius Platinum Limited Financial Results for the six months ended 31 December 2011 (09/02/12)

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