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Walter Muchinguri Assistant Business Editor
Mimosa Platinum Mine recorded a 5 percent increase in production of platinum group metals to reach a record 60 842 PGM ounces during the second quarter ended December 2014.

During the preceding quarter Mimosa Platinum produced 57 799 PGM ounces. The production for the quarter was 9 percent higher than the 55 586 PGM ounces that was produced during the same period in 2013.

Recoveries were up 78 percent and volumes processed increased by 5 percent to 665,843 tonnes while Stockpile at the end of the quarter was approximately 181 258 tonnes.

According to a production report by Aquarius Mining, which has a 50:50 joint interest in Mimosa with Impala platinum, mining cash costs per tonne constant at $71 while costs per PGM ounce decreased by 4 percent to $781 as a result of increased production.

According to a production report by Aquarius Mining which jointly owns Mimosa with Impala platinum, the mine continues to operate well, despite cost pressures which have increased in recent quarters.

“The Mimosa management team has identified a number of cost saving initiatives which are currently being implemented,” it said.

The mine’s total capital expenditure for the second quarter amounted to $8,5 million. Expenditure was mainly incurred on mobile equipment, drill rigs and LHD; conveyor belt extension and down dip development.

The record production at Mimosa came as production at Kroondal another platinum mine that Aquarius owns jointly with Anglo American Platinum recorded a 1 percent decline in production to 111 115 PGM ounces during the quarter under review from 112 248 PGM ounces during the previous quarter.

However there was a 64 percent increase in production at Platinum Mile, a wholly owned tailings treatment operation that is owned by Aquarius, to 2 996 PGM ounces from 1 831 PGM ounces during the previous quarter.

As a result total production from the three operations rose 2 percent to 174 953 PGM ounces during the period under review from 171 878 PGM ounces a quarter earlier.

Aquarius chief executive Jean Nel was happy with the levels of production at the three operations.

“Both Kroondal and Mimosa delivered excellent production and cost performances in the quarter, with Mimosa recording its highest ever quarterly production and Kroondal delivering a record eighth consecutive quarter of above 105,000 4E ounce production,” he said in a statement.

“The increased production, coupled with excellent cost management enabled Aquarius to generate positive operational cash flows despite a sharp drop in PGM prices, which fell by 10 percent in US dollar terms and 8 percent in rand terms.”

Aquarius also indicated that it did not expect a “material increase” in PGM prices in the short term.