Mining firm Eastern Platinum ('Eastplats') fell to a net loss of $7.95m in the second quarter, compared with earnings of $3.45m the year before, as industrial action held back production at its flagship Crocodile River Mine (CRM) in May.

This compared with the $5.63m loss recorded in the first quarter, which was down from a profit of $0.8m in the first three months of 2010.

In the three months to 30 June 2011, platinum group metal (PGM) ounces sold fell 33% year-on-year from 30,820 to 20,528. However, the price per PGM ounce climbed by 10% to $1,113.

In May, the firm revealed that industrial action had engulfed CRM following a wage dispute with members of the National Union of Mineworkers (NUM). It said following a break down in wage negotiations on 6 May, employees drove mine vehicles through the security gate to the Zandfontein Mine. They then occupied the mine in what the company called "illegal action".

Along with its second quarter production results released on 19 July, Eastplats said that issue had been resolved with the signing of a two-year wage agreement with NUM. However, it also revealed that full-year production is now expected to reach 105,000 PGM ounces in 2011, down from 131,901 ounces the year before.

Shares fell 2.69% to 45.25p at 2.21pm on Monday.

BC

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