Anglo American Platinum’s (Amplats) production from the Tumela mine at the Amandelbult Complex in South Africa has been affected by heavy rainfall, forcing it to temporarily stop operations although the company does not expect this to impact its production targets for this year.
Amplats’ total metal-in-concentrate for the full year to December 2024 reduced by 7% to 3.6 million ounces while its refined platinum group metals (PGM) production increased by 3% to 3.9 million ounces through the draw down of work-in-progress inventory built-up from prior years.
However, sales volumes increased by 4% to 4.1 million ounces.
The company had set a target of between 3 million ounces and 3.4 million ounces for production in the current year. After heavy rains pounded the northern parts of South Africa in the past few days, Amplats had to stop operations at Tumela mine and across the wider Amandelbult Complex.
“Operations at the Amandelbult Complex, except for the Tumela mine, restarted on 24 February. A detailed impact assessment and recovery plan to ensure safe production at Tumela mine is under way,” said Amplats on Monday.
The Tumela mine contributes about 10% of Amplats’ metal in concentrate production. Although the Tumela mine has remained shut, Amplats does not expect this to impact on its production targets for this year.
“Preliminary indications are that the 2025 metal-in-concentrate production guidance of 3.0 million to 3.4 million PGM ounces is not expected to be impacted,” explained the company.
The heavy downpours caused incessant flooding and were worsened by the collapse of the Bierspruit dam near Swartklip on 20 February. This caused water to flow into the mine, overwhelming pumping capacity, leading to flooding of certain underground workings and the main pump station.
While surface flooding in and around the Amandelbult Complex temporarily affected access to the operation, the main Dishaba mine, the concentrator and other infrastructure at the complex, were largely unaffected.
In 2024, Amplats lowered all-in sustaining costs (AISC) by 13% to $986 per 3E ounce while unit costs decreased by 2% to R17 540 per PGM ounce, more than offsetting the 11% decline in “as previously reported” own-mined production and inflation.
Earnings before interest, tax, depreciation and amortisation (Ebitda) of R19.8 plunged 19%, primarily due to a 13% decline in realised rand PGM prices. Resultantly, headline earnings of R8.4 billion in Amplats for the full year were down 40% compared to a year earlier.
Amplats is being de-merged from Anglo American, a process expected to be completed this year. Analysts say the disposal will unlikely be to a single entity.
Amplats has said that post the demerger, it will be establishing its independent capital structure consistent with its commitment to maintain a strong balance sheet able to support delivery of its strategic priorities.
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