Xstrata is looking to considerably boost its platinum output through its operations in South Africa, a senior official revealed yesterday (7th December).

Peet Nienaber, the diversified Swiss miner's Chief Executive for Alloys, announced that its Eland project should triple platinum production and reach full underground mining by 2014.

In an interview with Dow Jones Newswires at an investor day presentation in London, he also explained that platinum output at the facility is expected to total 313,000 oz per year by 2016.

Mr Nienaber also sounded a note of caution by suggesting that demand for platinum from the auto industry will not return to the peak levels witnessed in 2007 for the next three years.

Xstrata currently holds a 25 per cent stake in Lonmin, the world's third-largest platinum producer, but has revealed that it is in no hurry to push ahead with any further deals.

Chief Executive Mick Davis claimed that the company is adopting a patient approach as it believes it will get some value from the holding in the future.

"I have infinite patience with Lonmin. It's an option; it's an option which came about in unfortunate sets of circumstances and if I could play that hand again I would play it differently," he said, according to Mining Weekly.

"But it's not an option which costs us a huge amount of money. And it's something that I think eventually we will be able to turn to value, but we have to wait for the right set of circumstances to do that."

Xstrata, which is also the world's largest producer of ferrochrome, has operations in 19 countries across Africa, Asia, Australasia, Europe, North America and South America.

Sources:



Xstrata: $1.3 Billion Platinum, Ferrochrome Projects Planned (07/12/10)



Xstrata has 'infinite patience' on Lonmin, platinum growth (07/12/10)

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