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Angloplat cuts 2007 refined platinum output forecast

Fri 16 Nov 2007, 15:18 GMT
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JOHANNESBURG (Reuters) - Anglo Platinum, the world's biggest platinum producer, cut this year's output forecast to between 2.45 and 2.5 million ounces of refined platinum from its previous forecast, the firm said on Friday.

Shares in Angloplat extended their losses, falling 5.75 percent to 950 rand after the announcement, against a 1.12 percent fall in the blue chip Top-40 index at 1444 GMT.

South Africa's Angloplat, which in July revised downwards its output forecast to between 2.6 and 2.65 million ounces of refined platinum, blamed accident-related shutdowns and wage-related strikes for the even lower production forecast.

A shortage of skills and high staff turnover, and the potential impact of the planned one-day industry-wide strike by the National Union of Mineworkers, were also behind the lower forecast, the firm said in a statement.

The company, majority-owned by Anglo American Plc, also said it would shut its Turffontein shaft in Rustenburg to improve safety by replacing service columns and steelwork, expected to last 134 days from Friday, which would reduce platinum output by 9,000 ounces in 2007.

Angloplat also said output would be hit by the closure of the central shaft at its Kroondal joint venture with Aquarius Platinum, where a worker was killed in a rock-fall on Thursday.

The company also said it would implement safety measures at all its remaining mines, causing one-day shut-downs.

The company also blamed the increased frequency and duration of suspension of production by the regulatory authorities, who have taken a hard-line stance, and have routinely shut all mines where accidents take place.

Angloplat said the revised 2007 production target followed analysis of actual refined production to the end of October.

The NUM, which has around 300,000 members, wants to stage the strike in a bid to force companies to improve worker safety, and is now awaiting a permit to ask its members to down their tools. It is not clear when the strike will take place.

 
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