Anglo American Platinum to restart PGM, base metals production

(Sharecast News) - Anglo American Platinum said on Tuesday that it has "safely and successfully" completed the repair of the Anglo Converter Plant (ACP) phase B unit ahead of schedule, meaning it can now restart production of its platinum group metals and base metals.
The ACP and full downstream processing operations are completing a safe ramp-up and should be fully operational from 12 May, the company said, adding that a force majeure to suppliers of concentrate will be lifted on that date.

Chief executive officer Natascha Viljoen said: "We have carried out substantial testing to ensure the stability of the ACP Phase B unit, and as we complete the ramp-up, we are engaging with suppliers of concentrate to lift force majeure imminently. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms."

The estimated cost of repairs is about 150 million rand, in line with the lower end of Anglo's guidance.

The company said repair work on the ACP Phase A unit continues and is progressing in line with the project plan. All orders for long lead items have been placed and the dismantling work started on site. Due to the time taken to refine the respective platinum group and base metals, the force majeure notice remains in effect for refined metal customers.

"Given the collective uncertainty around the start-up of ACP, the ramp-up of mining operations and the potential impact of Covid-19, Anglo American Platinum retains its current guidance and will provide an update as appropriate when we have further information and clarity on production," it said.

The ACP phase A converter plant at the Waterval smelter complex in Rustenburg was damaged after an explosion within the converter on 10 February. The phase B unit was commissioned to take over from the phase A plant and was in the process of ramping up to steady state when water was detected in the furnace.