Zimplats production affected by strike action 5th August 2004

Zimbabwe Platinum Mines (Zimplats) has confirmed that total mineral production for the three months to the end of June has been affected by a three-week strike.

A total of seven work days were lost across the quarter compared to the March quarter, with production dropping by 5 per cent compared to the previous quarter.

"The total volume extracted was lower than the projected due to the three-week work stoppage by the employees of the mining contractor. The dispute has since been resolved and all operations are back to normal," Zimplats said in a statement.

"The labour dispute although not dramatically influencing the volume mined for the quarter, impacted adversely on the input generated reserves."

The average grade for the four elements mined by Zimplats - platinum, palladium, rhodium and gold - equalled 3.14 grams per tonne, down from 3.20g/tonne during the first quarter.

"Ore grade although above budget was disappointing compared to the previous two quarters due to a high level of dilution as a result of mining operations taking place in a particularly faulted area," Zimplats stated.

The company also explained that high international prices were offset by a surge in operating costs.


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