Northam Platinum is a project with good prospects, according to the Executive Manager: Commercial of Mvelaphanda Resources.

The operations at Northam Platinum had been known for being a deep, high-cost and high-risk operation, but the introduction of the Booysendal project has changed perceptions.

James Wellsted said that the project made it the only company in the industry that is going from "deepest mining to shallower lower-cost mining".

"Where Northam is unique is that it has steady-state production of about 300 000 oz/y, with Booysendal providing a growth step-change, with potential for further step-change down the line, because of its scale," he told Mining Weekly.

Mr Wellsted believes that as high platinum-group metal (PGM) prices remain, the project will generate enough cash to be able to fund part of Booysendal's capital requirements from internal cash flows.

But the Booysendal project is also dependent on Eskom and its plans to increase power generation capacity.

An additional smelting facility could also be introduced while Northam Platinum is planning to expand its refining operations in Port Elizabeth to full scale.



Source:

Northam Platinum changing from deep, complex to shallow, lower cost, 27/06/08
http://www.miningweekly.com/article.php?a_id=136117