Impala Platinum (Implats), the world’s second largest producer, said on Friday that output of refined platinum rose 9% in the nine months to the end of March.

Implats said nine-months production rose 9% to 1.38 million ounces on the back of higher throughput at its mines.

Production of palladium and rhodium rose 4% during the same period.

Production during the January-March quarter stood at 425000 ounces. The company said output during the three months to the end of March was impacted by safety-related stoppages at its Impala Rustenburg and Marula operations, resulting in a total loss of around 10500 ounces of platinum.

South Africa has a dire safety record compared with the industrialised world and deaths have led to temporary closure of mines, denting output.

Companies have invested heavily to improve safety in a bid to dismiss claims by unions that they were putting ounces before lives.

But analysts have said it is unlikely they will reach a zero-harm record in the near term.

Implats said full-year production at its Impala operation was estimated at around 940000 ounces.

Production at Marula remained constrained by the lack of mining flexibility, it said.

Implats said its Zimbabwean unit Zimplats was running at its Phase1 nameplate capacity of 180000 ounces, while its expansion to 270000 ounces remained on track.

South African miners have been battling with safety-related stoppages and strikes over wages, with unions demanding above-inflation increases, which employers said they could not afford.

The National Union of Mineworkers (NUM) said earlier this month it was demanding a 14% pay rise for its members at Implats, more than triple the official inflation rate, which stood at 4.1% in March.

Last year, the union and Implats agreed on a 7.5-8% rise in wages after talks which took weeks and only just managed to avoid a strike.

– Reuters