HomeNews2008 platinum forecasts drop again

2008 platinum forecasts drop again

The Potgietersrust
platinum mine plant –
one of the Angloplat
operations affected by
the power crisis
Johannesburg, South Africa — MININGREVIEW.COM — 24 April 2008 – As the full impact of South Africa’s power crisis sinks in, two of the world’s top three platinum producers – Anglo Platinum and Lonmin – have again lowered their production forecasts for 2008.
World number-three platinum producer Lonmin announced here yesterday that sales for the financial year would be around 775 000 ounces. This is almost 10% below the previous 2008 production estimate of 860 000 oz.

“The new estimate is based on a steady improvement in the underlying performance of our mines in the second half as the initiatives implemented by the new mining team gain traction,” the statement claimed.

It takes into account current constraints in relation to electricity supply, but the company emphasised that any deterioration of the current power supply situation, or any further significant safety stoppages, are risks to this target

The concentrators produced a total of 346 892 saleable ounces of platinum in concentrate for the first half of the 2008 financial year to 31 March – a fall of 22% on the first half of the 2007 financial year. This was mainly as a result of the lower throughput from the mines.

Meanwhile Reuters reports that South Africa’s power crisis could cut production from Anglo American’s platinum operations by 150 000 oz in 2008.

Anglo CEO Cynthia Carroll told the news agency: “We’ve said publicly that the first big outage had an impact of about 30 000 oz of platinum, and we are looking at another 120 000 for the rest of the year. It is very, very significant,” she added.

Earlier this year Anglo American’s Anglo Platinum – top platinum producer in the world – forecast 2008 production at 2.4-million ounces.