Aquarius Platinum says second quarter production decreased four per cent quarter-on-quarter to 105,629 platinum group metal (pgm) ounces.

The firm blamed a "significant" rise in the number of Section 54 safety stoppages, which it noted is a problem affecting the entire platinum sector in South Africa.

Attributable 4E pgm production was 43,398 oz at Kroondal, 14,404 oz at Marikana and 18,712 oz at Everest, which was hit by a protected two-week strike by employees of the mining contractor in the quarter.

Output from its Chrome Tailings Retreatment Plant and Platinum Mile operations stood at 559 oz and 3,328 oz respectively.

The company's second quarter production was down 17 per cent from a year ago.

Chief executive officer Stuart Murray said the December quarter was "most challenging", both for Aquarius and the platinum industry as a whole.

He blamed increased Section 54 stoppages across the Rustenburg district and "continued underperformance" by the company's lead mining contractor.

Lonmin recently said it lost 177,000 ts production in the quarter as a result of safety stoppages.

Issues around the new hanging wall support methodology at Kroondal and Marikana are now "largely resolved", but production was below capacity "due to the widespread and sometimes unjustified application of Section 54 safety stoppages", Mr Murray explained.

He continued: "This issue is making the South African mining industry a difficult place in which to operate and whilst zero-harm is laudable, there must be practical implementation of the law.

"Not only has the incidence of these stoppages risen markedly, in many cases the time now taken by the regional department to resolve these stoppages has risen from some two days to a week or sometimes more."

In Zimbabwe, production at Mimosa fell 6.2 per cent 25,228 4E pgm ounces, but Mr Murray warned of the "negative regulatory impositions" continuing to escalate there.

He concluded: "The challenges facing the region's platinum industry at present should not be underestimated."

Sources:

DJ Aquarius Warns On Challenges Facing Platinum In Southern Africa (31/01/12)

Aquarius Platinum Limited Production Results to 31 December 2011 (31/01/12)

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