Platmin revealed today (22nd July) that increased output at its Pilanesberg mine should allow it to become a "mid-tier producer" by the fourth quarter of 2009, Mining Weekly Online reports.

The R2.7 billion redevelopment of the site - which is located in the North West province of South Africa - is continuing apace, with the processing plant set to be commissioned by Q3 2010.

Now Executive Chairman Keith Liddell has explained the company's main objective in the short-term is ensuring that the three process streams at the mine reach full output.

"They're already running at full tonnage production," he told the news provider at Platmin's inward listing on the Johannesburg Stock Exchange on Wednesday.

"As we mine deeper and our recoveries come up, then we'll move to full-ounce production of 250,000 oz a year, which puts us in a mid-tier producer position."

The company has also revealed that the life-of-mine break-even cost of platinum at Pilanesberg is between $600 per oz and $650 per oz at current exchange rates and rand-dollar prices.

Mr Liddell noted that he intends to counteract the low rand prices of pgm metals at present by keeping costs to a minimum and focusing on achieving maximum output at the mine.

He added: "We're very well positioned cost-wise and that comes from us having an open-pit mine. We don't have costly underground operations.

"All of our ounces come from an open-pit and that's much cheaper mining. It's the rand profit margin that we focus on, given that most of our cost is in rands."

A large number of pgms, including platinum, palladium, ruthenium, iridium, rhodium, copper and nickel, are being produced at Pilanesberg.

Sources:

Low-cost Pilanesberg breaks even at $650/oz platinum – Platmin (22/07/09)

PRE-LISTING STATEMENT Prepared in terms of the Listings Requirements of the JSE Limited (22/07/09)

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