The strong rand is having a detrimental effect on profitability in the platinum sector according to Anglo American Platinum (Angloplat), the world's largest platinum miner.

Profits at the firm are forecast to be down for the first six months of the year in comparison to the same period in 2002.

The average rand price of the basket of metals sold by Angloplat this year has dropped by 17 per cent when compared to the average last year, despite output from mining operations having increased to a level nine per cent higher than that achieved during the first six months of 2002.

Improvements in productivity are expected to continue, following expansion in operations and improvements to processing sites.

Even so, the rand/dollar exchange rate guarantees that year-end profits will be significantly lower than they were in December 2002.

'It is anticipated that the factors mentioned above will result in refined platinum production for the full year being in the region of 2.3 million ounces,' AngloPlat said in a statement.

AngloPlat will release full and completed results for the half year ending June 30th 2003 at the end of this month (July 30th).