TOP NEWS: Anglo American Platinum Reopens Phase B At Waterval Plant

(Alliance News) - Anglo American Platinum PLC said Tuesday it has completed the repair works at ...

Alliance News 5 May, 2020 | 9:25AM
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(Alliance News) - Anglo American Platinum PLC said Tuesday it has completed the repair works at its Phase B converter plant at the Waterval smelter in Rustenberg, North West province.

Amplats is the platinum group metals business of blue-chip miner Anglo American PLC, which has a majority stake.

The plant was commissioned to take over the work of Plant A, which was damaged after an explosion in the converter on February 10, forcing Amplats to declare a force majeure.

But Amplats detected water in the furnace at Plant B. This posed a "high risk" of explosion, Amplats explained, meaning it also had to be shut down.

The Phase B plant is now expected to be fully operational by next Tuesday following the ZAR150 million repair just. As a result, the force majeure to suppliers of concentrate will be lifted.

The miner said work has already begun to repair the Phase A plant, but will not be completed until at least the second quarter of 2021, and the work will cost between ZAR500 million and ZAR600 million.

Amplats Chief Executive Natascha Viljoen said: "I am pleased to report that we have safely and successfully completed the repair of the Phase B unit ahead of schedule, enabling the restart of refined production of our platinum group metals and our base metals. We were vigilant in adhering to strict health and safety protocols to keep the repair team safe during the lockdown, whilst ensuring that we were able to implement social distancing and hygiene requirements which form our new way of working during the Covid-19 pandemic."

Viljoen continued: "We have carried out substantial testing to ensure the stability of the ACP Phase B unit, and as we complete the ramp-up, we are engaging with suppliers of concentrate to lift force majeure imminently. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms."

Amplats has amended deals with the likes of Sibanye Stillwater Ltd and Royal Bafokeng Platinum Ltd due to the disruption at Waterval.

"Given the collective uncertainty around the start-up of ACP, the ramp-up of mining operations and the potential impact of COVID-19, Anglo American Platinum retains its current guidance and will provide an update as appropriate when we have further information and clarity on production," Viljoen added.

Amplats was 4.6% higher in Johannesburg on Tuesday morning at ZAR1,005.54. Anglo American was 2.2% higher in Johannesburg at ZAR323.79. In London, Anglo American was 4.0% higher at 1,408.20 pence.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Anglo American PLC 1,670.20 GBX 3.07
Anglo American Platinum Ltd 109,730.00 ZAC -0.42 -

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