eBusiness Weekly
Enacy Mapakame
Unki Mine’s parent company – Anglo American Platinum’s full year 2023 production figures pointed downwards, although gains in the Zimbabwe operation offset further declines.
According to figures from the group, total PGM production at Unki increased by 5 percent to 243,800 ounces from 232,100 PGM ounces benefiting from the concentrator debottlenecking project completed in 2022.
Tonnes milled rose by 3 percent against 2022 despite mill relining challenges post the debottlenecking.
Unki recorded 4E built-up head grade increased by 1 percent to 3,46g/t (grammes per tonne) from 3,42g/t in the prior year, reflecting the benefit of work to reduce waste dilution from mining in lower-grade areas.
In terms of financial performance, Unki’s cash operating costs rose by 9 percent to US$183 million on the back of a 36 percent increase in development, a 7 percent increase in square metres mined, and above-CPI inflationary increases, most notably in electricity, explosives and chemicals.
The US dollar cash unit cost increased by 4 percent in 2022 to $990 per PGM ounce. Rand unit costs increased by 17 percent to R18,266 per PGM ounce owing to the depreciation of the rand to the US dollar.
Unki’s EBITDA decreased by 51 percent to R2,1 billion with a mining EBITDA margin of 27 percent compared to 47 percent in 2022. Economic free cash flow was R1,3 billion from R3,6 billion in the prior year.
As for overall group performance, total full year PGM production (comprising platinum, palladium, rhodium, iridium, ruthenium and gold) decreased by 5 percent to 3 806 100 ounces from 4 024 000 ounces in 2022.
The group attributed the declines to lower output from Amandelbult Dishaba Mine as a result of lower than planned immediately mineable ore reserves, caused by higher panel loss owing to bad ground conditions and planned infrastructure closures across the Amandelbult Complex.
Additionally, Mogalakwena’s lower grades and lower milling volumes further contributed.
According to the group, production was further impacted by lower output from Kroondal, reflecting the planned rampdown of the operation and the disposal of our 50 percent interest effective November 1, 2023, resulting in Kroondal transitioning to a 100 percent third-party POC arrangement. The decline was marginally offset by increased production from Unki, while Mototolo production was in line with prior year.
Group chief executive officer, Craig Miller, has highlighted an intentional strategy at the concentrators to produce higher grade concentrate.
This produces the same PGM content at lower concentrate throughput volume which has the benefit of reducing required primary furnace capacity and allows them to place the Mortimer Smelter on care and maintenance, thereby reducing operating costs, capital expenditure and enhancing overall processing competitiveness.
Further to that, the company has announced a proposed restructuring process, which could impact 3,700 jobs (including fixed-term employees) across the South African operations.
“The section 189A process involves a consultation period with trade unions and affected employees and will be facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA). Only when the consultation process is concluded will the final number of impacted jobs be known,” said Miller.
