Zimbabwe Platinum Mines has set itself a series of high pgm production targets for the coming years, as it anticipates growth in the industry.

A company official today told Platts that the firm had its sights set on improved growth, with production of platinum in 2004 tipped to reach 165,000oz.

He said the high prices in the current platinum market would help sustain production over a long period of time.

"Platinum prices will determine production at the source," he explained.

However, the outcome of the government's agreement with Needgate Investments is expected to be crucial in this aim, particularly since the new minister of mines, Amos Midzi, opposes the deal.

"The government's fallback on the investment issue will adversely affect future production," explained the Zimplats official.

However, the government says it is simply safeguarding its investment by ordering a comprehensive report on the $30 million acquisition deal from Zimplats.

Opinion on the role the government plays in the Zimbabwean platinum industry is divided, with some analysts critical of the secrecy surrounding state actions.

Former Zimplats chief Roy Pitchford says he is unsure whether the government's promise of 15 per cent empowerment funds from the Needgate deal will actually materialise.

Nevertheless, current Zimplats chairman Rob Still remains optimistic that the government will honour its promise.