Tuesday, January 27, 2009

PGM Production Down At Crocodile River

Eastern Platinum confirmed yesterday (26th January) that production of platinum group metals (PGM) at its Crocodile River Mine in South Africa's North West Province decreased by around six per cent in the fourth quarter of 2008.

Statistics released by the company show that a total of 298,514 tonnes were processed for an output of 29,015 oz, compared to figures of 317,602 tonnes and 30,755 oz for the previous quarter.

The decline is being attributed to the fact that the number of milling and hoisting shifts between Q3 and Q4 fell by 12 per cent, mainly as a result of the statutory worker holiday period.

In addition, Eastern revealed that development meters were down by 18 per cent on a quarterly basis after the reduction in shifts and the planned cut in reserve development, which commenced in late November.

The latter includes suspending operations temporarily at the Crocette mine as the company looks to slash its costs and preserve cash against a backdrop of falling prices in PGM markets.

Eastern Platinum, which is based in Canada, was founded in 2003 and became South Africa's country's largest PGM producer in 2006.

Full report

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