Platinum Australia revealed today (7th August) that it should be able to almost triple its pgm production in the next five years, Mining Weekly reports.

The company announced earlier this week that its annual output reached 85,000 oz pgm 4E (platinum, palladium, rhodium and gold) in the 2009-10 financial year.

However, Managing Director John Lewins confirmed at the Diggers and Dealers Forum in Australia that the figure could increase to 240,000 oz per year by 2014.

In addition, he said the firm is also on schedule to commence production at its Kalahari Platinum joint venture project in South Africa's North West province by late 2011.

The project, which will dovetail with the company's flagship Smokey Hills platinum mine, is expected to produce between 120,000 oz and 140,000 oz pgm 3E (platinum, palladium and gold).

Mr Lewins noted that Platinum Australia is one of the lowest-cost pgm producers as its average production at Smokey Hills is $350 per oz, while the industry-wide average is closer to $650 per oz.

He also informed officials at the forum that the company has managed to reduce its debt at the mine from R325 million to R125 million.

Turning to supply and demand, Mr Lewins suggested that the platinum used in autocatalysts is still proving popular, despite the effects of the global economic crisis.

The lower prices in the current climate are also attracting interest in platinum jewellery, he said, with the precious metal also being used in new developments such as fuel cells.

On the supply side, he noted that global production should remain flat this year after falling by almost ten per cent to about six million ounces between 2006 and 2008.

In South Africa, which has 76 per cent of the world's platinum reserves and where most major mining firms have operations, Mr Lewins said supply will also stay flat in 2009.

A number of factors stemming from the financial crisis - including mine shutdowns, spending reductions and wage disputes - have all contributed to the situation, he added.

Platinum Australia has labelled Smokey Hills with a projected average annual pgm production of about 100,000 oz.

Source:

Platinum Australia eyes 240 000 oz/y by 2014 (07/08/09)

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