South African Impala Platinum reported a 10% dip in refined platinum group metal production during the third quarter owing to reduced smelter availability and severe power outages on Tuesday.
South Africa is the world’s top producer of platinum group metals, yet the nation is in the grip of a power crisis owing to the frequent breakdown of its outdated coal-fired power plants. This is expected to have an impact on PGM manufacturing throughout the world.
Impala announced in a recent update that their PGM production declined to 662,000 ounces in the quarter ended March 31 from 735,000 ounces in the same time last year.
Impala’s primary operations in South Africa have been hampered by planned smelter maintenance and reduced power supply from state-owned utility Eskom, which has resorted to requiring miners to cut their energy use, a procedure known as “load curtailment.”
Lower Group output was exacerbated by lower Group production volumes, decreased available smelting capacity owing to scheduled maintenance, and increased severity and frequency of load restrictions throughout the quarter, according to Impala.
Impala is also present in Canada and Zimbabwe, both of which have power problems.
Despite the operational challenges, the miner expects to meet its full-year output target by June, albeit at the lower end of its guidance range of 3 to 3.15 million PGM ounces.
Anglo American Platinum (Amplats) of South Africa reported a 13% decline in first-quarter PGM output last month, in addition to power disruptions and plant shutdowns.
