Resumption of PGM refining plant
Anglo American plc notes the announcement by Anglo American Platinum Limited released to the Johannesburg stock exchange. Anglo American Platinum has safely and successfully completed the repair of the Anglo Converter Plant (ACP) Phase B unit. The ACP and full downstream processing operations are completing a safe ramp-up and expect to be fully operational from 12 May 2020. Force majeure to suppliers of concentrate will be lifted on that date.
CEO of Anglo American Platinum, Natascha Viljoen, stated, “I am pleased to report that we have safely and successfully completed the repair of the ACP Phase B unit ahead of schedule, enabling the restart of refined production of our platinum group metals and our base metals.
We were vigilant in adhering to strict health and safety protocols to keep the repair team safe during the lockdown, whilst ensuring that we were able to implement social distancing and hygiene requirements which form our new way of working during the COVID-19 pandemic.
We have carried out substantial testing to ensure the stability of the ACP Phase B unit, and as we complete the ramp-up, we are engaging with suppliers of concentrate to lift force majeure imminently. All temporary commercial arrangements applicable during the force majeure period will revert to normal commercial terms.”
The estimated final cost of repairs for ACP Phase B is c.R150 million, in line with the lower end of guidance provided. Repair work on the ACP Phase A unit continues and is progressing in line with the project plan. All orders for long lead items have been placed and the dismantling work started on site.
Due to the time taken to refine the respective platinum group and base metals, the force majeure notice remains in effect for our refined metal customers. Force majeure arrangements with these customers will be lifted in the future and in line with the provisions of our agreements.
Given the collective uncertainty around the start-up of ACP, the ramp-up of mining operations and the potential impact of COVID-19, Anglo American Platinum retain its current guidance and will provide an update as appropriate when we have further information and clarity on production.
