Platinum miner Lonmin has announced that it is to completely rebuild its Number One furnace at Marikana following a leak in December.

The company is to spend R45 million on the reconstruction of the furnace and will not be completed until March 11th this year.

Full year sales of platinum have been revised to between 980,000 and one million ounces because of the delay to operations in Marikana.

The company explained that these sales will include 880,000 ounces of refined platinum from its own metallurgical facilities, 90,000 ounces of toll refined platinum and between 10,000 and 30,000 ounces of concentrate or semi-refined platinum.

Production costs at the Marikana mine will be increased because of the rebuild, but Lonmin says its overall forecast for mine production remains at 1.02 to 1.04 million saleable ounces of platinum.

The company stated: "In order to minimise the production and financial impact of the smelter rebuild process we will run all three of our Pyromet furnaces for the balance of this financial year."

Lonmin added that it is also considering running the Merensky furnace during the second half of its financial year in an effort to minimse production losses.

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