South African miner Northam Platinum has revealed today (5th February) that it saw a production increase at one of its major mines for the half year ending 31st December 2008.

New official interim figures from the company show that it managed to up its output of metals in concentrates at Northam Zondereinde by 10.7 per cent to 5,193 kg or 166,952 oz.

Furthermore, Northam revealed that the refurbishment and commissioning of its smelter have been completed, while it also concluded an offtake agreement with Platmin's Pilanesberg mine and a toll-treatment agreement with Braemore Resources.

Chief Executive Glyn Lewis said: "In the medium term Northam will benefit from the additional flexibility which we will derive from mining different ratios of reef type; in the longer term this adds an opportunity to increase our sales offering to the market and represents a further step in our stated strategy of growing production to feed into the modular build-up of the Heraeus Refinery SA."

The company also confirmed in the results that the bankable feasibility study for its much-coveted Booysendal project is still on target to be completed in the first fiscal half of 2010.

Mr Lewis explained that the plan to develop the site on a modular basis remains in place after a number of studies into alternative strategies revealed that the current approach is the most cost-effective.

"We are initially focusing on developing a 120,000 tpm production unit which will be replicated as market conditions and the availability of power allow," he added.

"This approach gives us the flexibility to manage our capital expenditure and production in line with prevailing market conditions."

Source:

Northam interim results (05/02/09)
http://www.northam.co.za/ir/media/2009/media_05feb09.asp