Canadian mining outfit Eastern Platinum (Eastplats) has reported a fall in production, as well as disruption and damage to its flagship Crocodile River Mine project.

The company posted a 17 per cent drop in platinum group metal (pgm) output for the first quarter of 2011.

Total pgm ounces sold fell from 30,531 in Q1 2010 to 25,387 in the first three months of 2011.

The US average delivered basket price per pgm ounce increased 18 per cent from $959 (£589.8) to $1,136 (£698.7) over the same period.

Head grade decreased to 3.9 g/t from 4.1 g/t in Q1 2010, while average concentrator recovery jumped from 78 per cent to 79 per cent year-on-year.

Development metres increased by 50 per cent to 4,219m and on-reef development rose by 26 per cent to 2,434m compared to Q1 2010.

As a result of the fall in production, Eastplats recorded a net loss of $5.6 million (£3.4 million) for Q1.

"The traditional slow start in January combined with the changes to improved stope support standards and the consequent retraining of underground personnel resulted in a significant decrease in production and, correspondingly, earnings for the quarter," said Eastplats president and chief executive officer Ian Rozier.

"We are confident that the impact of this is short term and that production and earnings will quickly return to anticipated levels."

He added that development of the Crocette project is progressing and expects to award construction contracts for Mareesburg in the Eastern Limb of the Bushveld Complex soon.

Last week, a wage dispute with the National Union of Mineworkers led to some workers occupying and damaging the Zandfontein and Maroelabult mines at the Crocodile River project.

Although the mine was vacated on May 7th and is now operational, there is ongoing disruption as striking employees are still attempting to stop others returning to work, Reuters reported.

Sources:


Eastern Platinum Reports Results for the Three Months Ended March 31, 2011 (11/05/11)



Eastern Platinum posts Q1 loss; workers halt flagship (12/05/11)

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