Xstrata confirmed yesterday (1st February) that its overall pgm production declined slightly over the course of 2009.

The diversified Swiss miner posted full-year output of 221,586 oz, which was marginally lower than the total of 222,516 oz recorded for the previous 12-month period.

Platinum production slipped from 138,098 oz to 132,969 oz, but this was offset by palladium output rising from 65,774 oz to 67,435 oz and rhodium output leaping from 18,644 oz to 21,182 oz.

"Production was adversely affected by above average rainfall in the early part of the year, which halted production at Eland for several days, and unforeseen geological anomalies which impacted the head grade at Mototolo," said the company.

Xstrata also noted that higher recoveries and increased supply of UG2 reef ore to the mill - plus improved feed grade at Eland - helped to compensate for the impact on production.

In the final quarter of 2009, work to replace the opencast tonnage at Eland with an underground mine commenced, which should see pgm output reach 300,000 oz by 2014.

The financial results also showed that the company's annual coal production rose by 11 per cent to 95.2 million tonnes, with nickel output up 4.6 per cent to 57,052 tonnes and copper output down by 4.8 per cent to 906,898 tonnes.

Xstrata currently holds a 24.9 per cent stake in Lonmin, the world's third-largest platinum producer, but has made no secret of its desire to increase its holding.

Sources:

Production Report for 12 months ended 31 December 2009 (01/02/10)

Xstrata cranks up output in Q4 (01/02/10)

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