Anglo Platinum is planning to increase its production by 100,000 oz annually for the next four years, it emerged yesterday (26th July).

Chief Executive Neville Nicolau revealed that the company will aim to improve yearly output by at least three per cent from its current 2.5 million ounces over the next decade.

Speaking to Reuters, he claimed that the autocatalyst industry will continue to bolster demand for the precious metal, with the jewellery sector also featuring prominently.

"Our long-term strategy revolves around plans on how to find new uses for the metal," he told the news provider.

Mr Nicolau's comments were made after the world's largest platinum producer announced its interim financial results for the six months to the end of June.

Another issue to emerge from those figures was that the company had five deaths during the period, which represented an improvement of 16 per cent.

Mr Nicolau also noted that the year-to-date reduction in fatalities is at 50 per cent, but emphasised that he will not be happy until there are no deaths at Anglo's mines.

"What we have done along the way is demonstrated on many of our operations, and collectively, that we can go long periods of time without fatalities," he said in an exclusive interview with Moneyweb editor-in-chief Alec Hogg.

"And if you can go long periods of time without fatalities, then why can't you go forever without fatalities?"

Anglo's financial results also revealed headline earnings of R2.6 billion for the first half - which was a rise of 532 per cent - and growth capital expenditure of R4.5 billion.

The impressive expansion programme devised by the company has led to questions about whether Eskom will be able to meet its subsequent electricity requirements.

Severe power issues and a dangerous flirtation with a total black-out in South Africa in January 2009 have dogged the state utility as it embarks on its own capital build projects.

However, Mr Nicolau confirmed that he does not expect electricity to "directly" impact Anglo's plans for the next ten years, as long as the situation is managed "quite carefully".

"Certainly, in terms of our interaction with Eskom, I am pretty confident that we'll be able to manage the ongoing relationship," he told Mining Weekly Online.

"I can't guarantee that there will never be issues in terms of Eskom, but we will absolutely do everything we can do to reduce the amount of power that we consume and to help Eskom in times of difficulty."

The majority of Anglo Platinum's operations are located in the platinum-rich Bushveld Complex to the north-west and north-east of Johannesburg.

Sources:

INTERVIEW-Angloplat to lift output by 100,000 oz/yr-CEO (26/07/10)

Eskom positioned to power AngloPlat's growth requirements (26/07/10)

Angloplat interim results: Neville Nicolau – CEO, Anglo Platinum (26/07/10)

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