ANGLO American says platinum group metals (PGMs) output at its Zimbabwean unit, Unki Mine declined three percent to 117 500 ounces in the first six months of 2024 from 121 500 ounces in the comparable period last year.
The Shurugwi-located mine produced 54 700 ounces in the second quarter 2024, marking a seven percent slump from the same quarter in 2023.
“… (the decline was) due to temporarily mining through a planned lower grade section,” Anglo American said in a trading update.
The lower-grade ore not only reduces the quantity of metals produced but also affects the overall profitability of the operation, as the cost of extraction remains constant while revenues decline.
This down turn is indicative of broader operational challenges that the mine is currently facing.
The operational difficulties at Unki are compounded by the broader challenges faced by the PGMs market.
The fluctuating prices of platinum, palladium, and rhodium have created an uncertain environment for producers.
Zimbabwe has the world’s second-largest PGMs resource, after South Africa, on the Great Dyke.
It has three platinum-producing mines Zimplats, Mimosa and Unki.
When comparing Unki’s output to other operations within Anglo American’s portfolio, the disparities become even more pronounced.
While Unki struggled with a seven percent decline in production, other mines, such as Amandelbult, reported an increase in output due to operational efficiencies and higher grades of ore.
The overall PGM production for Anglo American in the first half of 2024 was 1,75 million ounces, reflecting a five percent fall from the previous year.
However, the decline was not uniform across all operations, suggesting that Unki’s performance is particularly concerning within the context of the company’s broader production strategy.
Anglo American will report its financial results for the six months ended 30 June 2024 on 25 July 2024.