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Nqobile Bhebhe, [email protected]

ANGLO American Platinum Limited’s local unit Unki Mine total’s platinum group metals (PGM) production increased by five percent to 243 800 PGM ounces last year from 232 100 PGM ounces in 2022.

The firm benefitted from the concentrator debottlenecking project completed in 2022.

Unki’s debottleneck project, which was completed in 2021 and reached optimum production in 2022, was done at a cost of US$48 million with the expansion targeted to increase through put capacity.

Unki, 100 percent owned by Anglo Platinum America, has its operations on the Great Dyke in Zimbabwe, 60km southeast of the town of Gweru.

Anglo American Platinum produces all the platinum group metals (PGMs), which include platinum, palladium, rhodium, ruthenium and iridium, as well as by-products including gold, nickel, copper and chrome.

In its 2023 annual results said, “Unki Total PGM production at Unki increased by five percent to 243,800 PGM ounces (2022: 232,100 PGM ounces) benefitting from the concentrator debottlenecking project completed in 2022.

“Tonnes milled rose by three against 2022 despite mill relining challenges post the debottlenecking. 4E built-up head grade increased by one percent to 3.46g/t (2022: 3.42g/t), reflecting the benefit of work to reduce waste dilution from mining in lower-grade areas.”

The mining house noted Unki is a US dollar-denominated operation and operating costs rose by nine percent to $183 million (2022: $168 million) on the back of a 36 percent increase in development.

This represented a seven 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 four percent over 2022 to $990 per PGM ounce. Rand unit costs increased by 17 percent to R18,266 per PGM ounce (2022: R15,636 per PGM ounce) owing to the depreciation of the rand to the US dollar.”

The report added that Unki’s EBITDA decreased by 51 percent to R2,1 billion (2022: R4,3 billion), with a mining EBITDA margin of 27 percent (2022: 47 percent). Economic free cash flow was R1,3 billion (2022: R3,6 billion).”

According to the report, the combined South African and Zimbabwean Ore Reserves decreased in metal content by 2,8 percent from 154,1 4E Moz to 149.8 4E million ounces in the 12-month period.

“This was primarily due to combined annual production, disposal of the interest in Sibanye-Stillwater joint operations and a decrease related to revised economic assumptions and modifying factors at Unki.

“The combined South African and Zimbabwean Mineral Resources, exclusive of Ore Reserves, decreased by 0.4 percent from 487.0 4E million ounces to 484.9 4E million ounces in the 12-month period. This was primarily due to the disposal of the interest in Sibanye-Stillwater joint operations.”

In its market review, PGM prices were weak with the average realised basket price being $1,657 per ounce, its lowest since 2019, and 35 percent less than in 2022

It said the fall was largely due to sizeable declines seen in rhodium and palladium, which meant both hit multi-year lows and only a flat performance by platinum.

Rhodium averaged $6,611 per ounce, 57 percent lower than in 2022. It was, however, still 69 percent higher than it averaged in 2019. Palladium averaged $1,336 per ounce, 37 percent lower than in 2022, and also 13 percent lower than it averaged in 2019.

In contrast, platinum’s 2023 average of $965 per ounce (London settlement price) was higher year on year by only $4 per ounce.

That was 12 percent higher than it averaged in 2019, but 11 percent lower than it averaged in 2021, its best recent year.

Meanwhile, Chief executive officer, Mr Craig Miller said the firm has announced a proposed restructuring process that could impact about 3 700 jobs (including fixed-term employees) across the South African operations.

“Only when the consultation process is concluded will the final number of impacted jobs be known. In parallel, we have initiated a contractor/vendor review process that could impact approximately 620 service providers/contractors. This review may result in the renegotiation of certain contract terms and scope, not renewing contracts when they expire and terminating other contracts within the contractual provisions.”

“We fully acknowledge that these next steps will affect our team and we understand the socio-economic impact this will have on our employees, their families and communities.”

Mr Miller the restructuring is necessary to enable the continued employment of thousands of workers and contractors, pay taxes and royalties to governments as well as procure goods and services from local suppliers.