Impala Platinum’s Zimbabwe unit said on Monday metal production fell 13% during the July-September quarter after a maintenance shutdown at its furnace, but the company is on track to submit a revised local ownership plan in November.

 

Zimplats said output of platinum group metals in concentrate had declined to 90 822 ounces compared to 103 874 oz during the previous quarter.

 

“The furnace was down for five days for scheduled maintenance. 4E metal production was thus 13% below (the) previous quarter in line with the lower mill and furnace throughput,” Zimplats said in a statement.

The platinum miner said a 60% rise in electricity tariff on September 1 was higher than expected and would increase production costs.

Revenues during the period amounted to $133m, 9% below the previous quarter, due to lower sales volumes.

Zimplats said it is working on a revised local ownership plan scheduled to be handed to the Zimbabwean government in November. Its initial document was rejected in September.

Zimplats, which is 87% owned by Impala Platinum Holdings [JSE: IMP] is among several foreign-owned mines President Robert Mugabe’s government wants to hand over at least 51% of shares to black Zimbabweans.

Earlier in October, Implats announced that local communities would acquire a 10% stake in Zimplats as part of local empowerment compliance measures.