Lonmin Platinum expects to double its platinum and platinum group metals (pgms) output within the next six or seven years, its Chief Executive Officer has announced.

Bradford Mills confirmed the timescale for the proposed increase in output in an interview with Reuters, having earlier this year announced its plans without specifying a target date.

He said: "Over the next six or seven years we will double our platinum and total pgms production to about 2 million ounces of platinum and 4 million ounces of total pgms."

Demand for platinum - which Mr Mills says is growing at five per cent or 300,000 ounces annually - is being boosted chiefly by increased use in the automobile industry in catalytic converters, as European and US motor manufacturers are forced to comply with environmental legislation, the company's head said.

Meanwhile, the burgeoning construction market in China will be a secondary driver of demand, he predicts.

However, while a rise in demand bodes well for prices of pgms, Mr Mills perceives that the increased output from mining companies across the sector is likely to ensure that price will stabilise at their current levels.

He said: "The demand growth is certainly equal to that of new mine growth so we would expect the price will continue pretty much in the arena that we are today.

"In the platinum market, if the price goes up too much you also see demand for the jewellery sector contract so (the price) can't go up dramatically."

Earlier this year Lonmin announced that International Finance Corp is to provide a loan of $100 million to ease the process of the mining company's black empowerment programme.

Source:
Lonmin says to meet platinum target in 6-7 years
05/06/07
http://investing.reuters.co.uk/news/articleinvesting.aspx?type=allBreakingNews&storyID=2007-06-05T132814Z_01_T132403_RTRIDST_0_LONMIN-PLATINUM.XML&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=InvArt-C1-ArticlePage1

Lonmin, IFC in partnership for sustainable community development in South Africa
13/03/07
http://www.abcmoney.co.uk/news/13200738238.htm

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