Amplats unpacks decrease manufacturing expectations, Mogalakwena plans

Platinum group metals (PGMs) miner Anglo American Platinum (Amplats) has revised downward its manufacturing expectations for 2023, in step with new working situations.

The corporate’s metal-in-concentrate (M&C) manufacturing steering has been revised downward to between 3.6-million and 4-million ounces, from between 4.1-million and 4.5-million ounces beforehand.

Refined PGMs manufacturing has been revised right down to between 3.6-million and 4-million ounces, down from between 3.8-million and 4.2-million beforehand.

Accordingly, the manufacturing steering for 2024 has additionally been revised downward to the identical ranges as 2023. For 2025, Amplats is anticipating M&C manufacturing of between 3.5-million and three.9-million ounces and refined PGMs manufacturing of between 3.3-million and three.7-million ounces.

PGMs manufacturing for this 12 months stays in step with steering at four-million ounces for M&C and three.8-million ounces for refined PGMs.

CEO Natashca Viljoen says the corporate continues to expertise excessive ranges of inflationary value pressures, resulting in a unit value of about R15 300/oz, or $950/oz, and due to this fact will proceed with value mitigation and containment measures in 2023.

She says the manufacturing steering for the subsequent few years has been adjusted to make sure a protected and secure operational momentum.

Significantly, the M&C manufacturing is being impacted on by decrease grades on the Mogalakwena mine and decrease volumes from the Amandelbult mine, the latter of which is because of difficult geological floor situations and the opencast operation coming to the top of its mine life.

Amplats additionally expects to obtain decrease purchase-of-concentrate volumes than beforehand anticipated, in that its Kroondal operation, which is 50% own-mined materials and 50% purchase-of-concentrate materials, is coming in the direction of the top of its mine life and can change to a tolling settlement in 2024.

Moreover, Amplats’ Siyanda purchase-of-concentrate settlement is switching to a tolling settlement in 2025, leading to decrease M&C manufacturing volumes and reflecting the adjustments in industrial phrases.

The corporate has determined to shut its growing older Merensky concentrator, which will even affect on M&C manufacturing, and slightly use the UG1 and UG2 concentrator crops for processing. The fee advantages in closing the plant can be about R200-million a 12 months.

In the meantime, Amplats will decide within the subsequent 18 to 24 months on whether or not to construct a 3rd concentrator on the Mogalakwena mine, conserving in thoughts capital effectivity, improved expertise deployment and provide chain and inflationary pressures.  

The corporate is progressing six workstreams on the Way forward for Mogalakwena programme, together with the investigation of underground alternatives, optimisation of the mine plan and operational efficiency, deployment of expertise corresponding to hydrogen gas cell vans, and increasing concentrator capability.

Viljoen elaborates that the extra time for deciding on the third concentrator permits the corporate to enhance capital effectivity. “There may be minimal web current worth affect from beginning development in 2026 or 2028 owing to availability and high quality of ore to be fed into the concentrator. As the dual underground decline ramps up, higher-grade materials can be out there to feed into the concentrator, which offsets the 18- to 24-month resolution timeline to start out development of a 3rd concentrator.”

Furthermore, the corporate began rebuilding its Polokwane smelter within the third quarter, with reheating of the smelter as a result of begin on December 10 and first matte faucet anticipated early in January.

Owing to loadshedding and a resultant delay within the Polokwane smelter’s rebuild, Amplats says whole built-up stock on the finish of the 12 months can be about 350 000 oz, the vast majority of which can be refined subsequent 12 months and the steadiness in 2024.

Amplats’ whole capital expenditure for this 12 months is anticipated to be R17.3-billion, together with stay-in-business capital of R9.5-billion.

Similar Articles



Please enter your comment!
Please enter your name here



Most Popular