The mid-tier
producer now aims to fully ramp up production at the Styldrift project in the
first quarter of 2020, compared with a previous plan for the first quarter of
2019, it said in a statement.
“Delaying
the start of stoping at Styldrift I ensures that value is not destroyed by
ramping up high quality Merensky ounces into a depressed market but that
instead the business is well positioned to begin ramp-up when the market
improves,” Bafokeng said.
Styldrift,
with an estimated lifespan of more than 60 years, is a high grade, shallow
mechanised mine in the North West province, about 100 km (62 miles) from
Johannesburg.
Drilling at
Styldrift could be further delayed from the first quarter of 2017 – after being
pushed back from the third quarter of this year – if prices sink further,
Bafokeng said.
The company
had spent 5.19 billion rand ($361 million) by the end September on developing
Styldrift, which is still expected to produce 2.76 million tonnes per year.
Spot
platinum has recovered from seven-year lows of $851 hit on Friday on concerns
about oversupply and slowing demand in top consumer China, but is still at
levels last seen in 2008.
In the third
quarter, Bafokeng cut its capital expenditure at Styldrift by 32 percent
compared to the previous quarter on lower platinum prices while also slashing
other “non-critical” spending.
Shares edged
up 0.25 percent to 23.73 rand outpaced by the 1.17 percent rise in
Johannesburg’s All-Share index. (reuters)
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