Barplats Investments, a failing 83 per cent subsidiary of Impala Platinum (Implats), is to be sold or closed within the next two months.

Almost 1,000 people are employed by the enterprise, which operates two mines. Market conditions and operational difficulties have put the long-term future of the business in doubt.

A decline from R55 million net profit in June 2002 to a R67 million loss a year later is attributed to a decision to move from opencast to underground extraction.

As much as 38 per cent fewer tons were mined by the firm as a whole in 2003 than during the previous twelve months, while unit costs per ton milled rose by 62 per cent.

Implats chief executive Keith Rumble told journalists at the presentation of the company results yesterday that Implats bosses were 'still deliberating.'

Industry experts speculate that the best way to increase returns to shareholders would be to ditch the under-performing Barplats and focus instead on the potential offered by Implats' Zimbabwean interests.

Barplats is estimated to be worth R560 million at Wednesday's share price of R2.50 and any potential buyer would have to be aware that the development of Kennedy's Vale, one of its mines, could cost up to R1.5 billion.

With net profit reduced by a quarter this year due to the strength of the rand, Implats needs to do all the streamlining of its interests it can.