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Angloplat expects increased production

Anglo Platinum
Chief Executive
Neville Nicolau
London, England — MININGREVIEW.COM — 19 May 2010 – The chief executive of Anglo Platinum “’ the world’s top platinum producer “’ Neville Nicolau says the company expects to produce more than its previously forecast 2.5 million ounces of platinum this year.

“We have had as a strategy for some time now to introduce some flexibility in terms of production, which means that we would like to be able to ramp up our production and ramp it down when the market requires this,” he said in an interview here with Reuters Television.

“We see at this point in time that we are preparing to produce slightly more this year,” he added. “We think we will produce more than 2.5 million ounces.”

Nicolau went on to say that the company would provide further guidance on production in its mid-year report, adding that it was also likely to revise its 2010 platinum price view upwards at that point. The company said earlier this year that it expected the metal to trade at above US$1 500 an ounce in 2010. Spot platinum is currently bid at just over US$1 650 an ounce.

Nicolau added that he expected the platinum market to be slightly undersupplied in 2010.

“We are still forecasting that the market will be in a slight deficit for this year,” he said. “Though there are people in the industry forecasting a slight surplus, the market is around about in balance for this year, and it bodes well for the rest of the year for platinum producers,” he contended.

“Internally we are looking at actually reducing our power consumption by modifying our process to be less reliant on electricity,” Nicolau said. “Angloplat is working closely with Eskom to address South Africa’s ongoing electricity concerns, he added.