Anglo Platinum, the world's largest platinum miner, announced today a reduction in its target for platinum production in 2006. Annual production is now planned to reach 2.9million oz, down from the 3.4million oz stated in 2000. The company also forecasted production will reach 2.45million oz in 2004.

The declaration, which was initially expected in November, has been long awaited by users and other producers of platinum.

'The production targets may be revised from time to time, as they remain dependent on the rand/US dollar exchange rate and the prices of the metals produced and sold by Angloplat,' said the company in a statement.

'Should the outlook improve, Anglo Platinum has the flexibility to accelerate project implementation.'

The company added that the consequences of the slowdown on the platinum supply deficit are likely to be reduced in importance by an increase in palladium usage in autocatalysts and reduced use of platinum for jewellery.

The effect of the announcement on the price was not immediate with a muted reaction in the Far East.  However, platinum rose sharply as London trading got underway, with platinum pushing towards $800, before easing slightly.  The market remains thin and nervous with dealers now waiting for the reaction of the US trade.