Lonmin and the Anglo Pacific Group (APF) have seen their Australian pgm project, Platinum Australia (PLA), halve in equity value following a report into its WA exploration that described it as 'technically sound but not commercially viable at the current metal prices and exchange rates.'

Lonmin owns 44 per cent of PLA, while Anglo Pacific has an interest of about 11 per cent.

For all the apparent problems, though, Anglo Pacific's finance director Brian Wides remains enthusiastic about the project:

'If we could buy the rest of Platinum Australia at today's prices we would write the cheque like a shot', he said. 'We are still very excited about it.'

Referring to the hiatus in operations he said it was just a pause: 'I think it was a marginal call and I don't think it will be on pause for long.'

For now, it seems that PLA can make the most money from sharing a calcine leaching technique picked up in Western Australia with pgm producers in South Africa.

A spokesman said the company will 'focus on commercialisation of the new metallurgical process through participation in development of pgm projects and on other exploration projects in Western Australia.'

'The current rapid expansion of the PGM industry in South Africa offers the best potential in this regard.'

A fall in pgm prices and the strength of the Australian dollar against its US counterpart are blamed for the problems at the Panton deposit in Australia.

Mr Wides is convinced this will only temporarily impede what he sees as an inevitable move into real profitability:

'A reasonable dollar exchange rate and an increase in the palladium price would see it [the exploration] rolling again.'