Anglo Platinum confirmed yesterday (23rd October) that it has given the green light for a new R10 billion mine to be built at Styldrift but that it is also under constant review.

The world's largest platinum producer revealed its approval - alongside that of project partner Royal Bafokeng Holdings (RBH) - in a third-quarter production update statement.

However, concerns about the plunging platinum price and instability in the global financial markets have led to the sudden review, which is set to take place over an unconfirmed period.

A statement from Anglo read: "Given current metal price levels and uncertainty in global markets, the costing and scheduling of all capital projects is under review and management is evaluating a number of initiatives to further reduce operating costs and corporate overhead costs, optimise procurement saving and improve operational productivity."

The new mine would see 230,000 tonnes of Merensky reef processed per month and boost production at another joint venture - the Bafokeng-Rasimone Platinum Mine (BRPM) - to 400,000 oz per year, compared to the 190,000 oz recorded in 2007.

Anglo also confirmed that Styldrift - which would make use of a new twin-shaft system and a new concentrator - is scheduled to reach steady state production by 2015.

The restructuring move would see the advent of a new, historically disadvantaged controlled PGM producer in South Africa, which is set to be called NewCo.

RBH CEO Niall Carroll said: "This step is in line with RBH's strategy of maximising the value of the group's PGM interests, and creates an independent black-controlled PGM producer that can list on the JSE.

"We are also excited at the prospect of acquiring and marketing our share of the platinum metal from the joint venture."

The Styldrift project was devised and initiated by Anglo and RBH in 2002, when they forecasted that it would cost in the region of R4 billion.



Source:

Anglo Pt approves Styldrift, but...(23/10/08)
http://www.miningmx.com/platinum/846526.htm

Angloplat, Royal Bafokeng approve R10,3bn expansion, restructure JV (23/10/08)
http://www.miningweekly.com/article.php?a_id=145950