Unki mine unit costs decline as output rises

Published: 25 July 2017

Anglo American Platinum (Amplats) announced on Monday that production from Unki mine in Zimbabwe increased by 5% to a new production record of 38,400 ounces compared to the comparable period production of 36,400 ounces, driven by a 3% increase in tonnes milled and a 2% increase in the 4E built-up head grade to 3.48g/t from 3.40g/t through better mining reef cut, which reduced waste mining, resulting in more higher grade ore being delivered to the concentrator.

Amplats said Unki will be one of its remaining core assets after selling off its Rustenburg operations and kickstarting disposal agreements for Pandora, Bokoni and other operations in 2016. The Zimbabwe operation has remained a low cost asset for Amplats, although economic uncertainties in the country have been worrisome for investors.

Full-year production from the Unki mine is now expected to top 75 000 ounces in the full year to December.

Revenue from the Unki mine was slightly down at R1.038bn, compared to the 2016 interim period revenue of R1.103bn. Reported cash operating costs (the costs after allowing for off-mine smelting and refining activities) at Unki decreased 6% to R881 million (1H 2016: R940 million). This decrease was driven primarily by the rand strengthening against the dollar by 14%, as Unki is a dollar denominated operation. The mine kept on-mine costs in line with mining inflation of 6%. The reported cash operating costs per platinum ounce for the year decreased 12% to R22,848 due to improved production and lower rand costs.

Cash operating costs at Unki fell by 12% to R22 848 per platinum ounce.

- Business Daily