Aquarius Platinum is set to deliver the first fruits of production from its new Everest South project in South Africa in 2005 following the completion of all the necessary funding arrangements.

Today the firm said that it plans to initiate construction on the project in April next year and is anticipating production of around 165,000 ounces of platinum group metals during 2005.

Finance director Walter Vorwerk told Reuters that the mine would have an output of 225,000 ounces of platinum at full capacity, as well as 66,000 ounces of palladium and 24,000 ounces of rhodium

Mr Vorwerk was also at pains to make clear that the problems with the strong rand that slowed expansion at Angloplat would not be an issue.

He explained: “At current (metals) prices and current rand rates, and obviously projecting some form of weakening in the rand, it has a Net Present Value (NPV) at 12 per cent of about $90 million.”

Following the financial boost of an R860 million investment by BEE investors in Aquarius, as reported yesterday, the firm now says it has sufficient resources to embark upon the project.

The viability of the scheme had long been established following a feasibility evaluation earlier in the year.