Platinum Australia has revealed today (18th March) that operations at its Smokey Hills platinum mine in South Africa are progressing well as it looks to ramp up to full production.

The project initially started as an open cut operation, which is set to be completed in June, with the ore stockpile having increased from 100,000 tonnes to around 200,000 tonnes.

Development of the underground mine started towards the end of last year and will take over in the coming 12 months, with the first production from stopes commencing in the September quarter.

The on-site treatment plant, boasting a design capacity of 720,000 tonnes per year, is on course to produce around 95,000 oz 4E pgm in a flotation concentrate, which will be delivered to Impala Refining Services.

Platinum Australia Managing Director John Lewins said: "The commissioning of the plant has progressed to the point where we are now moving to treat our higher grade stockpiles, some of which run up to plus 8 g/t 4E pgm, and focusing on ramping up to full production."

Mr Lewins added that the company's expected margins on the project have been boosted by improving platinum prices and the continued ten-to-one exchange rate between the rand and the US dollar.

Platinum Australia has a direct stake of 69.75 per cent in the Smokey Hills development, with the remaining balance held by various black economic empowerment companies.

Source:

Platinum Australia ramping up platinum production at Smokey Hills, SA (18/03/08)
http://www.proactiveinvestors.com.au/companies/news/1050/platinum-australia-ramping-up-platinum-production-at-smokey-hills-sa-1050.html