JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Atlatsa will close its Klipfontein opencast mine at the end of the year.

Reporting on its results for the quarter and six months ended June 30, the company on Tuesday noted that the operation, in Limpopo, had faced delays in obtaining a water use licence, stoppages at the eastern pit owing to community disruptions and the intersection of a large number of potholes on the western portion of the pit.

These challenges had impacted on the operation’s ability to deliver sufficient volumes to generate a profit.

Atlatsa also reported delays in the ramp-up of expansion projects at its Bokoni mine.

CEO Harold Motaung said the effects of a restructure plan for Bokoni, which was announced in September 2015, were starting to yield positive results, with improved cost and safety performances.

“[However,] the implementation of the restructure plan remains a work in progress, resulting in certain operational challenges that include skills mix and retraining requirements among our labour force, all of which has had a negative impact on planned development at our ramp-up projects,” he added.

As a result, planned production ramp-up at the Brakfontein Merensky and Middelpunt Hill upper-group-two shaft operations will be delayed by 6 to 12 months.

Atlatsa will, over the coming months, investigate alternatives to reduce further delays in capital projects.

FINANCIAL PERFORMANCE
Atlatsa narrowed its net loss for the six months to June 30 by 92.5%, to C$23.49-million, compared with a net loss of C$313.9-million in the first half of 2015.

Revenue for the six months under review was 26.6% lower year-on-year at C$76.29-million, while cash operating costs also fell 26.9% year-on-year to C$79.68-million.

Meanwhile, the term loan facility agreement entered into between Atlatsa and Anglo American Platinum (Amplats) in December 2015 has been amended and restated to allow Amplats to advance Atlatsa an additional R193-million to enable it to fund its share of operating expenses, working capital expenditure and capital expenditure at Bokoni, should these costs not be funded from mine cash flows.