Restructuring On The Way

Lossmaking operations will not be supported – Implats

- Martin Creamer

South Africa’s second-biggest platinum mining company, Impala Platinum (Implats), has said that it would no longer be supportive of loss making operations and was taking strong steps to bring about a cash-neutral position at its major productivity hit Impala Rustenburg platinum mine and would close the community-distrupted Marula mine if it failed to become cash positive.

Impala Rustenburg, which produced 654 600 oz of platinum in the 12 months to June 30, incurred a headline after-tax loss of R2.68-billion in the period, with disruptions, mainly by surrounding communities, putting Marula R737-million in the red.

“We’re the second-largest platinum producer and, de facto, that imposes on us a leadership responsibility. We take that seriously. That’s why we are very explicit at this stage that we’ll not support ongoing lossmaking operations,” new Implats CEO Nico Muller told a media roundtable in which Creamer Media’s Mining Weekly participated.