Regulatory safety stoppages are supposed to lead to high productivity. But when carried out frequently they can disrupt workflow and prove way too costly. This is what two South African mines have discovered the hard way, according to their recent financials.
Regulatory safety stoppages resulted in a 19% drop of AngloGold Ashanti’s South African operations year-on-year performance, according to Bloomberg. They had a telling effect on AngloGold Ashanti’s Mponeng and Vaal River operations.
First quarter output of another South African mining house, Implats, is said to have fallen by 11.6%, largely due to safety stoppages and scheduled maintenance.