Impala Platinum Sees Profit Falling More Than 20% Due to StrikeAna Monteiro
Impala Platinum Holdings Ltd. said half-year profit will fall at least 20 percent because of lower production following a five-month strike at the world’s biggest mine for the metal.
Earnings per share for the six months ended Dec. 31 will be lower than the 1.45 rand ($0.13) reported a year earlier, the Johannesburg-based company that’s the world’s second-biggest platinum producer said in a statement today.
The largest union at the South African operations of the three top platinum companies held a five-month strike over pay that ended on June 24. It takes months to return a mine to full production. The strike pushed the economy into contraction in the first three months of this year as mining output plunged. South Africa accounts for more than two-thirds of mined production of the metal.
Profit has fallen because Impala Rustenburg, the world’s largest platinum mine, has been “impacted by the ramp-up of operations to reach full capacity following the five-month strike,” the company said. “Production was further impacted by industrial action and safety stoppages at Marula and the precautionary closure of the Bimha mine at Zimplats.”
Impala will publish results on Feb. 26.