Anglo Platinum has revealed that it is delaying R32 billion worth of capital expenditure on five platinum projects as it aims to rein in spending in the current economic climate.

The world's largest platinum producer announced this week that it incurred a 95 per cent year-on-year fall in headline earnings to R405 million in the first six months of 2009.

Originally projected to cost R16 billion, the development of the number four shaft at Amandelbult is the most significant work to be put on hold - for a total of four years.

Meanwhile, the R7.1 billion Twickenham platinum mine has been delayed by two years, while the R6.1 billion Styldrift Merensky phase one project will be on ice for 18 months.

In addition, Anglo has confirmed that it will delay construction of a R1.9 billion base metals refinery and the R1 billion number two slag furnace cleaning project by a year.

The company was quoted by Business Report as saying: "Angloplat's forecasts and projections, taking into account reasonable possible changes in the expected trading performance, indicate that it should be able to operate within the level of its facilities for the next 12 months.

"Angloplat is currently reviewing its funding needs and facilities with the aim of restructuring its existing borrowings."

Anglo also announced in the half-year results that it expects net debt to increase amid projected pgm prices, while full-year capital expenditure could shrink from R13.1 billion to R9.6 billion.

Source:

R44bn worth of platinum projects held (28/07/09)

Ÿ Adfero Ltd