It has been claimed that platinum producers in South Africa are in an ideal position to capitalise on beneficiation offsets.

Abiel Mngomezulu, Deputy Director-General of Mineral Policy and Promotion at the Department of Minerals and Energy, has said that platinum producers could gain more points for the beneficiation offsetting scheme than their gold counterparts.

Mr Mngomezulu explained that providing platinum supplies to help the development of fuel cells in South Africa would enable platinum producers to gain more points than gold producers creating gold bars.

The beneficiation process is designed to spark growth of related economies in South Africa and the government is to promote this approach to mining companies by offering them the opportunity to pay less annual royalties or transfer less shares in empowerment deals in return for helping to establish greater wealth and employment for locals.

"We're still waiting to discover how we'll calculate those points above the base; in other words, how many 'offsets' do you receive for producing fuel cells relative to platinum or gold chains," explained Mr Mngomezulu to MiningMX.

Source:

SA govt says Pt producers to benefit, Wed, 20/06/07
http://www.miningmx.com/empowerment/984129.htm

Ÿ Adfero Ltd