Amplats’ post-strike ramp up is ahead of schedule

JOHANNESBURG (Reuters) – Full production at Anglo American Platinum's strike-hit Rustenburg, Union and Amandelbult mines in South Africa resumed a month ahead of schedule in September as operations bounced back from a five-month strike, the company said on Thursday.

Amplats, a unit of Anglo American, also said preparations for the sale of the Union mine and concentrator had been finalised and the sale process had commenced. It gave no further details.

The world's top producer of the precious metal had already signaled its intention to sell Union and its labour-intensive shafts aroundRustenburg, the epicentre of the strike, as it switches to more mechanised methods of mining.

The five-month wage strike by the Association of Mineworkers and Construction Union (AMCU), which ended in June, cost the company 424,000 ounces in lost production and it lost a further 108,000 ounces in the subsequent ramp-up.

This meant the strike has overall resulted in production losses for Amplats of 532,000 ounces, worth about $675 million at current spot prices.

The company also said refined platinum production fell 14 percent to 533,000 ounces in the third quarter of this year compared to the same period in 2013 and its sales guidance for the year remains between 2 and 2.1 million ounces.

Rival Lonmin said earlier this month it had returned to full production earlier than forecast after the strike, which also hit its operations. It exceeded 2013 monthly output levels in both August and September.

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