Anglo American Platinum (Amplats), the world's largest platinum producer, on Monday announced that its earnings for 2011 fell by 29 percent.

It said a government drive to stem the death toll in the South Africa's mines forced it to halt production 81 times for safety reasons, over double the 2010 figure.

"While we agree with the need for the regulator to stop operations for non-compliance, the key issue is the nature of stoppages and their effectiveness in addressing real risks," the company said in a statement.

Amplats reported an operating profit of R7.97 billion for the year ended 31 December 2011, a 10 percent increase.

Operating free cash flow also increased by 21 percent, to R9.41 billion

Amplats warned however that output would be flat in 2012.

CEO Neville Nicolau (pictured) said: “We are pleased with our strong financial performance, due primarily to a robust recovery in the basket price, particularly in the first half of 2011. Our operational flexibility and the increased reliability of our smelters enabled us to achieve increased sales volumes of 2.6 million ounces. We are particularly pleased to announce that our strong financial performance, improved capital discipline and cash generation, together with a positive outlook on the market, has enabled us to declare a final dividend of R532 million, or R2.00 per share.

“Anglo American Platinum expects the platinum market to remain in balance in 2012 due to continued strengthening of autocatalyst demand, resilient jewellery markets and continued investor interest,” he added.

Image: Getty