HomeNewsAnglo Platinum cuts capex

Anglo Platinum cuts capex

Anglo Platinum “’
capital expenditure
down by 27%
Johannesburg, South Africa — MININGREVIEW.COM — 29 July 2009 – Anglo Platinum “’ the world’s largest platinum producer “’ says its capital expenditure for 2009 is expected to be R9.6 billion, which is R3.5 billion below last year’s figure. This is due to actions taken following the global economic downturn experienced since the last quarter of 2008.

Announcing its interim results here, the company revealed that the following projects had been delayed as a result of the global economic downturn:

  • Amandelbult Number 4 Shaft (R16.0 billion) delayed by four years;
  • Twickenham platinum mine (R7.1 billion): project slowed down with completion delayed by 2 years.
  • Styldrift Merensky Phase 1 project (R6.1 billion attributable): delayed by 18 months;
  • Base metals refinery project (R1.9 billion): delayed by one year;
  • Number 2 slag cleaning furnace (R1.0 billion): delayed for a period of one year.

The announcement added that Anglo Platinum continued to target refined platinum production of 2.4 million ounces but would use process pipeline inventory stocks as required to meet market demand. Based on the company’s mining production forecast, process pipeline stocks and high smelter availability, it was likely that Anglo Platinum could supply up to 2.6 million ounces, should market demand increase during the second half of 2009.

The company would continue to manage costs as a priority by improving productivity, increasing efficiency and managing the supply chain and procurement costs. It aimed to keep the unit cash costs per equivalent refined platinum ounce for the year at the same level as in 2008.

Looking at the long term, the company’s market analysis indicated growth in demand for platinum, largely balanced with a slower increase in supply. Although the market was currently in balance, a deficit was expected to arise in the next few years as global markets and economies recovered.