Amplats completes Phase A converter plant rebuild, upgrades 2020 PGM guidance: company

London — Anglo American Platinum has brought forward the completion of the rebuild of its Anglo Converter Plant (ACP) Phase A, and upgraded its refined production guidance for 2020 to between 2.6 million and 2.7 million platinum group metal (PGM) ounces, up from the previously-stated guidance of around 2.5 million PGM ounces, the South African-based company said Dec. 7.

The ACP Unit A experienced an explosion in February, which forced its closure for repairs.

The company has now safely and successfully completed the rebuild of its Phase A unit in South Africa, several months ahead of the previously-expected schedule, it said.

Platinum reached its highest level in more than four years on Dec. 4 at $1,050/oz, slipping back marginally on Dec. 7, according to market reports. Platinum and palladium are used in automobile catalytic converters to control emissions of greenhouse gases and pollutants.

First converter matte from the rebuilt plant is ready to dispatch to the company's base metals refinery for the next stage of processing. The ACP Phase A is now in ramp-up and on track to be operating at full capacity by the end of the year, Anglo American Platinum said.

Sales volumes have also been upgraded to around 2.8 million PGM ounces, as minor metal refined inventories have been drawn down. The release of the work-in-progress inventory built up in 2020 is expected to take up to 24 months, the company said.

"We were able to procure and deliver long lead-time items to site six months ahead of schedule, despite the impact of COVID-19 on supply chains, enabling us to bring forward the rebuild to the end of 2020, ahead of our initial expectations of Q2 2021," company CEO Natascha Viljoen said. "First converter matte is now ready to be dispatched, allowing us to re-establish the processing pipeline to finished metals."

On Nov. 5, Anglo American Platinum, also known as Amplats, and which is one of the world's largest platinum and palladium producers, announced it had decided to close its Anglo Converter Plant Unit B at its Waterval smelter complex for a full rebuild, following water leaks. The news caused PGMs prices to jump.

Viljoen said that the company had worked "tirelessly" with its customers to mitigate the impact of the interruptions and manage its contractual obligations.