ANGLO American says platinum group metals (PGMs) output at its Zimbabwean unit, Unki Mine, slightly retreated by one percent to 179 700 ounces in the first nine months of 2024 from 182 000 ounces in the comparable period last year.
The marginal drop reflects Unki’s struggles to match its previous year’s performance down to operational inefficiencies and external factors.
It has been a tough year for the platinum miners who have withstood diminishing commodity prices and a general upscaling of operational costs.
Unki Mine’s performance for the third quarter ended September 30, 2024 (Q3 2024) was positive, marking a three percent increase in production compared to the previous quarter which uplifted overall group output.
“Own mined production decreased by 17 percent to 552 000 ounces, mainly due to the disposal of Kroondal in Q4 2023,” Anglo American said in a trading update.
“Excluding Kroondal, production decreased by nine percent due to lower output from Mogalakwena and Amandelbult, partially offset by higher production from Unki.”
The Shurugwi-located mine produced 62 200 ounces in Q3 2024 compared to 60 500 ounces in Q3 2023.
The mine’s modest improvement contrasts sharply with the 17 percent drop in Anglo American’s overall own-mined PGMs output, pointing to deeper inefficiencies across the PGM division.
In addition to internal operational challenges, Unki operates in an environment where the PGMs market is increasingly volatile. The basket price for PGMs, including platinum and palladium, declined by 18 percent year-over-year as of Q3 2024.
Zimbabwe has the world’s second-largest PGMs resource, after South Africa, located on the Great Dyke.
It has three platinum-producing mines ― Zimplats, Mimosa and Unki.
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’s PGM operations showed a mixed performance in 2024. Overall PGM production declined seven percent year-to-date compared to 2023, with a notable 10 percent drop in Q3 2024 compared to the same quarter last year.
Anglo American’s PGM units are grappling with operational challenges and lower commodity prices, but the company has managed to stabilise its refining works, which offset some of the negative impacts.
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