Northam Platinum revealed today (8th October) that it is aiming to double its pgm production through development of the Booysendal site, Reuters reports.

The company is planning to start construction on a major new platinum mine at the South African property in early 2010 following the completion of a feasibility study.

According to estimates, the project - whose first phase would be funded by a rights issue and cost about R3 billion - could see Northam become the world's fourth-largest platinum producer.

"Our intention remains to fund the project through a combination of a rights issue, internal retentions (own cash) and medium-term bank debt," Chief Executive Glyn Lewis told the news provider.

"Booysendal is living up to our expectations and is likely to be a significant, long-life producer, and one of the new-generation pgm mining projects of the future."

Mr Lewis added that the first phase - which is expected to have a life-of-mine of over 20 years - could yield annual platinum, palladium, rhodium and gold production of 130,000 oz.

A further expansion into a second phase is then predicted to bring the total output to 245,000 oz per year.

Northam Platinum is a unit of the black-owned Mvelaphanda Resources and has a combined resource base of 133 million ounces.

Source:

UPDATE 1-Northam Platinum to build new mine in 2010 (08/10/09)

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