World number three platinum miner Lonmin has reported that production for the half year ending March 31st is in line with expectations, despite problems with its South African power supply.

The UK-listed company announced that metal production rose 23 per cent during the year up to September 31 2003 to over 900,000 troy ounces. The group says it is aiming to produce 1 million ounces of platinum per annum by 2008.

Lonmin also revealed that world number two platinum miner Impala Platinum has agreed to sell its 27.1 per cent interest in Lonplats, Lonmin's main operating asset, and Lonmin will buy a further nine per cent, taking its Lonplats stake up to 82 per cent.

The rest of the shares will be transferred to new black economic empowerment venture Incwala, which should help both companies meet targets for black ownership of mining assets set by the South African government.

Lonmin said in a statement today that it has experienced reduced power supply from electricity utility Eskom at its South African platinum mines since Monday, but says it expects the problem will only have a marginal effect on full-year production.

Lonmin is now working with Eskom to ensure minimal disruptions and the problem is expected to be solved in a few weeks.

Lonmin will announce finalised interim results for the six months ending March 31st 2004 on May 13th.