Impala Platinum saw its platinum production decline slightly in the first quarter of 2010, it has been confirmed.

The world's second-largest producer of the precious metal posted output of 368,000 oz for the three months, compared with 385,000 oz for the same period in 2009.

Meanwhile, the company has also revealed that Zimplats, its subsidiary in Zimbabwe, plans to press ahead with the $500 million Ngezi Phase 2 expansion project.

The country's government is still attempting to clarify the indigenisation law, which requires foreign miners to offer 51 per cent holdings to black Zimbabweans.

Doubts had subsequently been expressed about the Ngezi strategy, but Zimplats confirmed that it is still committed to the project, "despite the fact that discussions are still ongoing on certain key issues".

"It's a bold move. Perhaps they've had separate negotiations with the government," Renaissance Capital Analyst Anthea Alexander told Bloomberg.

Impala revealed in March that it expects the expansion to add about two million tonnes of underground mine production per year, with the first phase having already added 80,000 oz of platinum.

Source:

Impala Proceeds With $500 Million Zimbabwe Expansion (17/05/10)

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