An independently owned platinum refinery could be forced to charge market-rate tolls in order to be viable, it has been claimed.

According to Michael Solomon, Chief Executive of Wesizwe Platinum, a refinery owned by independent producers may need to charge companies 17 per cent and 24 per cent of their revenue in order to cover the costs of capital and equipment.

Mr Solomon, who was speaking at a forum for independent platinum producers, added that such a development would also bring with it political and strategic implications as regards independent producers' agreement with major players.

In particular, it could mean that their freedom to enter agreements with different companies would be affected, he said.

An independent refinery could, however, provide Wesizwe Platinum with different options for treating output from its proposed new mine in the Pilanesberg, Business Day predicts.

The option of using surplus capacity at Northam Platinum's existing facilities to process output from a new operation at Pilanesberg could be stymied when it completes development of its Booysendal mine, according to Mr Solomon.

Source:

South Africa: Wesizwe Weighs Refining Options for Output of Pilanesberg Mine

http://allafrica.com/stories/200710250252.html


Ÿ Adfero Ltd