Platinum group metals (PGMs) miner Anglo American Platinum's (Amplats') refined PGMs production from own material decreased by 49% year-on-year to 673 100 oz in the fourth quarter of 2020.

The miner attributed the decrease to the Anglo Converter Plant (ACP) Phase B having been closed earlier than planned, on November 5, to ensure an ongoing safe operating environment, protect employees and protect the integrity of the plant.

The ACP plant, at Waterval in Rustenburg, is a key part of Amplats’ PGMs production process of treating furnace matte from the company's smelters.

Both the Phase A and Phase B units had been shut down initially in March 2020 following an explosion at the plant. Operations subsequently resumed, but after a series of water leaks throughout the year that resulted in further closures, Amplats in November announced that it would undertake a full rebuild of the ACP Phase B unit.

At that time, the ACP Phase A unit was also undergoing a rebuild.

The rebuild of the ACP Phase A unit was successfully completed ahead of schedule on November 24, with first converter matte dispatched to the base metal refinery for further processing on December 7.

"The ACP Phase A unit continues to perform well and in line with normal operating expectations. The ACP Phase B unit is now undergoing its expected full rebuild that is scheduled to be completed in the second half of 2021 at an estimated capital cost of R550-million to R600-million," says Amplats.

The ACP stoppages during 2020 have resulted in an increase in work-in-progress inventory of about one-million PGM ounces, which are expected to be released over the next 24 months.

Meanwhile, refined platinum production decreased by 53% to 296 400 oz in the fourth quarter, while refined palladium production decreased by 48% to 206 800 oz.

Toll refined platinum, palladium, rhodium and gold (4E) production decreased by 16% to 146 500 oz in the fourth quarter, owing to lower inputs received and the impact of the ACP interruptions.

MINE PERFORMANCE
Amplats reported a 7% year-on-year decrease in total PGMs production to 1.08-million ounces in the fourth quarter, Platinum and palladium production were down 6% to 497 800 oz and 338 400 oz, respectively.

PGMs production at Mogalakwena decreased by 3% to 306 700 oz, as a continued strong operational performance was impacted on by community unrest that resulted in fewer milling shifts as employees were not able to get to work, as well as minor operational issues at the North concentrator plant. These issues both led to lower milled volumes.

Platinum production decreased by 5% to 129 500 oz and palladium production decreased by 3% to 141 700 oz.

The Amandelbult mine's PGMs output was 22% lower year-on-year at 185 500 oz, as the Tumela Upper section and surface production come to the end of their life-of-mine.

Platinum production decreased by 22% to 93 400 oz and palladium production by 21%, to 44 000 oz.

At Mototolo, PGMs production increased by 4% to 69 800 oz, as a result of higher throughput resulting from improved concentrator runtime and plant stability, as well as an improvement in the 4E built-up head grade. Platinum production increased by 4% to 32 100 oz and palladium by 6% to 20 200 oz.

Unki's PGMs production increased by 7% to 55 800 oz, mainly as a result of higher 4E built-up head grade and higher throughput. Platinum production increased by 6% to 24 600 oz and palladium production by 10% to 22 000 oz.

Meanwhile, PGMs production from joint operations decreased by 14% to 198 000 oz. Platinum production decreased by 13% to 90 200 oz and palladium production by 17% to 56 200.

“Production performance was strong considering the ongoing implications of Covid-19. We reached 100% normal capacity by the end of the quarter, due to protocols being embedded and work routines put in place.

"As part of our Covid-19 protocols, we have put additional measures in place to test and screen employees returning from hotspot areas after the December break. The second wave of Covid-19 has led to an increase in employee infection rates; however, we are past the peak and are starting to see a reduction in active cases. As a result, we are currently operating at about 90% of normal production capacity," comments Amplats CEO Natascha Viljoen.