ZIMBABWE platinum production is estimated to fall 22% to 105 000 ounces (oz) for the second quarter of 2016, compared to the previous quarter, signalling a return to normal output levels, the World Platinum Investment Council (WPIC) has said. In the first quarter, output was 135 000 oz.
BY TARISAI MANDIZHA
According to a WPIC report, worldwide mining supply in the second quarter increased by 22% quarter-on-quarter to 1 695 000 oz.
In the period under review, refined production rose by 30% to 1 615 000 oz, while inventory sales are estimated at 80 000 oz for the quarter, compared to 150 000 oz in the first quarter 2016.
The reports showed that South African refined production was 53% higher in second quarter at 1 175 000 oz as most of the backlogged material was processed after the removal of a Section 54 stoppage at a refinery in the first quarter.
In the period under review, total mining supply was up 10% year-on-year, with refined production 5% higher.
For the six months to June, refined production fell by 1% year-on-year overall, and was 6% lower in South Africa owing to safety related stoppages at operations and a refinery.
“The unfortunate increase in fatalities in South African platinum mines in the first quarter of 2016 compared to the same period in 2015, occurred primarily over 80% at Western Limb operations, which account for 75% of South African supply. The associated safety stoppages in first quarter of 2016 reduced production from the Western Limb by 4% year-on-year to 1 470 000 oz,” reads the report.
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Zimbabwe holds the second largest known reserves of platinum after South Africa, but mines have struggled with low prices, a black empowerment law forcing mines to sell more than 50% of the business to locals and power shortages.
According to the mid-term fiscal policy review statement, Finance minister Patrick Chinamasa said platinum prices remained depressed and, hence, the increase in platinum revenues from $185 million to $396 million in the first half of 2016 was on account of output gains which were at 7,968 tonnes in the first 6 months of 2016, up from 4,919 tonnes registered during the comparable period in 2015.
Chinamasa said the deferment of the 15% export tax on un-beneficiated platinum to January 2017 also supported platinum production, especially under an environment where platinum prices of $958 per ounce were 18% lower than $1 161 recorded in the same period in 2015.
