UPDATE 1-Implats says FY output to fall to 850,000 ounces

* Output falls on safety closures, strike

* Company says unit costs to rise

(Adds details)

JOHANNESBURG, Nov 13 (Reuters) - South Africa's Impala Platinum (IMPJ.J), the world No. 2 producer of the precious metal, said on Friday its total refined output rose 6 percent in the first quarter, despite lower production at its main mine.

Impala Platinun (Implats) said in a statement higher production from its Zimbabwean operations, increased deliveries to its refinery and clearing of stocks during a two-week strike, led to the increase in refined platinum production to 413,000 ounces from 390,000 ounces a year ago.

But it forecast output would fall by 100,000 ounces this financial year to 850,000 ounces, and that it would reach its annual target of 1 million ounces within the next five years.

South Africa produces four fifths of the world's platinum and Implats alone supplies 25 percent of the precious metal, mainly from its South African operations and mines in Zimbabwe.

The company said lower production volumes will adversely impact unit costs during the first half of the current year.

Implats said recent improvements in U.S. dollar-based platinum group metal prices had been offset by the strength of the rand, which has gained more than 20 percent to the dollar this year.

South African miners sell their metal in dollars and pay for their costs in rand.

The company said cash preservation remained a priority.

Total palladium and rhodium output also rose by 22 and 20 percent respectively, the company said.

Workers at Implats ended the strike at the company's biggest mine, Rustenburg, on Sept. 7, after failing to win further increases from the company, but their action dented platinum output. [ID:nL717929]

Implats said output at Rustenburg declined by 26 percent due to the closure of all mechanised sections following an accident at the 14 Shaft where 9 workers were killed, and the strike.

The closures led to a loss of 25,000 ounces from the safety stoppages and a further 50,000 ounces due to the strike.