Aquarius Platinum has announced that it has begun producing the first concentrate from its pgm-focussed Chromite Tailings Retreatment project.

The project is part of a drive to maximise the company's pgm output, and involves the treatment of old dumps and current tailings streams from the Kroondal Platinum Mine.

Owned by the RK1 Consortium - made up of a 50 per cent majority from Aquarius Platinum, and 25 per cent holdings by GB Mining & Exploration and Sylvania South Africa - the scheme is designed to generate a significant addition to pgm production in the region at a low cost.

Aquarius chief executive Stuart Murray welcomed the commencement of production: "In less than one year, we have delivered an innovative operation providing new low-cost pgm ounces.

"Despite delayed tailings shipments from our neighbours due to Christmas shutdowns, I am delighted that the project is now up and running. It is expected to produce 28,000 pgm ounces per annum at steady state production."

The operation will treat 20,000 tonnes of chromite tailings a month, at an estimated average grade of 4 g/t pgm - or around 20,000 pgm ounces in 2005.