Xstrata posted increased platinum production figures for the first quarter of 2008.

The mining firm announced increases in production despite severe weather conditions and the effects of the South African power crisis.

Platinum production increased from 10,803 oz in the same quarter last year to 27,161 oz while palladium production reached 13,066 oz - an increase on the 6,408 produced in the first quarter of 2007.

But the South African power crisis has affected the results and Xstrata said it was in talks with Eskom for a solution to the problem.

It said it was "examining a number of alternative options to secure a cost effective supply of electricity to our operations over the medium term".

"Solid production performances at the majority of operations were partially offset by adverse weather conditions in Queensland, Australia and South Africa which impacted all open pit coal producers and ongoing restrictions to electricity supply to the mining industry in South Africa," a statement from the firm read.

The firm remains "very positive" over its financial operating performance in 2008.

Source:

Interim Management Statement and Q1 Production Report, 06/05/08
http://www.xstrata.com/media/news/2008/05/06/0835CET/