South African platinum miner Implats said Friday gross refined platinum output in the January-March quarter fell 40% to 205,000 oz, hit by ongoing strike action.
The company's "good start to the financial year was severely impacted in the third quarter [January to March] by the protracted wage strike at our Impala Rustenburg operation," CEO Terence Goodlace said.
"Production at Impala was significantly reduced due to the closure of the mine during the strike," he said, adding Implats wanted "a negotiated wage settlement that is both affordable and sustainable for the business.
"However, we expect the strike to constrain group performance for the remainder of the financial year. All other operations should continue to meet planned performance targets and the stockpiled concentrates from Marula, Mimosa and Two Rivers will be processed in the current quarter."
Gross refined palladium output fell to 126,000 oz during its third quarter from 220,000 oz a year ago, Implats said.
Over the first nine months of the company's 2013/14 financial year, platinum refined output fell to 992,000 oz from 1.2 million oz in the 2012/13 period, while Palladium was down at 595,000 oz from 796,000 oz.
On May 12, Implats and fellow South African platinum producers Amplats and Lonmin said they all strongly condemned recent acts of violence against employees attempting to return to work.
Previously, the three companies said in a joint statement that talks with the Association of Mineworkers and Construction Union had again failed to reach a conclusion to strike action. AMCU rejected an increased offer of a Rand 12,500 ($1,200) salary package by July 2017.
More than 80,000 AMCU union members downed tools January 23 in what has turned into one of the longest strikes in South Africa's recent history.
The workers have not been paid since the strike began.
"The wage offer that has been tabled as part of the wage negotiations with AMCU is fair in the current low platinum price environment. The human tragedy that is unfolding as a result of our employees not earning any income and the violence and intimidation being experienced on the platinum belt is devastating. Implats urges AMCU to moderate their demands and accept the fair wage offer," Goodlace said.
