A 7.4 per cent fall in tonnes milled was recorded by pgm producer Northam Platinum in the six months to December 31st 2009 when compared with the previous year.

The company's reviewed interim results and dividend declaration for the second half of last year show Northam's mine on the western limb of South Africa's Bushveld Complex milled 1,076,201 tonnes over the period, contrasting sharply with the 1,162,491 tonnes milled in the second half of 2008 and the 2,105,091 tonnes milled in the six months to June 2009.

The Merensky reef was worst affected, showing a 14 per cent fall in tonnes milled, while the UG2 reef recorded a reduction of just 0.8 per cent.

However, the combined average head grade improved by two per cent to 5.2g/t (3PGE+Au).

Ore reserve availability has fallen from 22 months to 18 months due to geological factors at Merensky, although it is hoped that the ore reserve position will be strengthened by a 20 per cent increase in development metres.

At the UG2 reef, ore reserve availability remained "satisfactory" at 24 months.

Meanwhile, the Northam Platinum board has given the go-ahead for an early works programme at its Booysendal platinum asset.

The works programme will be started immediately, with capital expenditure to the tune of $43.9 million allocated to build roads, pipelines and infrastructure.

This will pave the way for the construction of the mine, which is due to begin in July 2010.

In the meantime, issues including Environmental Management Programme approval, contractor selection and finance options will be considered.

With regards to the latter, Northam CEO Glyn Lewis said the company was likely to go to the market to ask for funding, although he stressed this would not impact on short-term plans.

"We have done some work on exploring various funding options, but more remains to be done. In the meantime, I must reiterate that we remain cash positive," he told Mining Weekly.

"We have an unencumbered balance sheet without any debt and in all likelihood we should be in a position to start the development of Booysendal from internal cash retentions," Mr Lewis said.

According to Northam's Rene Rautenbac, also speaking to Mining Weekly, mining production at Booysendal is expected to hit 130,000 oz of platinum a year from 2014.

Source:

H1 results marred by rand metal price slide (23/02/10)Northam Platinum likely to go to market for R3bn Booysendal (23/02/10)

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