Gold Fields has decided to put its Arctic Platinum project to one side now that estimated capital costs have risen by $200 million.

The appreciation of the euro has meant that the Finland project will now cost around $500 million.

The company has also reported a drop in estimated head grades for the project, which have fallen from 2g/t to below 1.9g/t.

It is not certain what Gold Fields will do with the project now, but John Munro, the group's director of international operations has outlined various possibilities.

"Our options range from putting it in our bottom drawer - which we are allowed to do - to doing a deal with a partner to take the project forward in way through which we retain some involvement."

Relatively poor price forecasts for palladium gave Gold Fields another reason not to sell Arctic Platinum.


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