Platinum Australia has begun its transition from contractor underground mining at its Smokey Hills Mine in South Africa to owner operator mining.

The move to owner operator mining should place Platinum Australia in a stronger position to meet its production targets as well as result in cost savings of 10 to 15% over the next three months.

Importantly, there is expected to be minimal disruption to production during the transition, which is scheduled for completion by the end of February, and no significant additional expenditure will be required.

The transition process is being completed with the full cooperation of current mining contractor JIC Mining Services.

The decision to move to owner operator mining is the result of extensive planning and evaluation work completed over a number of months to determine the most effective operational model for the Smokey Hills Mine.

Although mining has been undertaken by contractors since start up, the ability to move to owner operator mining was allowed for in the development, with all major capital equipment and mobile plant owned by the mine.

Platinum Australia will retain all its sub-contractors currently working on the site, including ProParts Engineering and Manufacturing which maintains and operates all mobile equipment, including the trucks, loaders and jumbo drill rigs which are owned by the mine.

(Sourced from Proactive Investors)