HomeNewsAngloplat output falls - but can produce more if needed

Angloplat output falls – but can produce more if needed

Johannesburg, South Africa — MININGREVIEW.COM — 22 April 2010 – Anglo Platinum (Angloplat) “’ the world’s No. 1 producer of the precious metal “’ has announced that its first quarter output fell 3% from a year ago after the group closed some shafts.

Revealing this in a statement issued here, the company reiterated that it would nevertheless produce 2.5 million ounces of the metal this year, and was in a position to produce extra ounces should demand for platinum rise.

Angloplat, which supplies close to half of the world’s platinum, said it expected the metal to be in deficit in 2010 due to a significant rise in demand, and forecast an average price of US$1 500 per ounce during the year.

The metal is mostly used in making catalytic converters to cut pollutants from motor vehicle exhausts and in jewellery.

“Jewellery demand might well be lower in 2010 as inventory levels in the supply chain appear to be adequate, but overall demand for platinum is expected to increase significantly due to substantial industrial and auto-catalyst restocking,” the company said in a statement.

Angloplat said production of platinum had been 594 700 ounces in the quarter to the end of March, compared with 613 400 produced in the first quarter of 2009. Output had fallen 1.5% below the fourth quarter of 2009.

It added that capital expenditure had been R1.3 billion rand for the quarter, and that it expected to incur around R8 billion rand of capex for the year.