Marikana, South Africa — 06 July 2012 – Another major platinum miner, Lonmin, is reviewing its closely watched spending plans, providing the latest evidence that short-term pressures on the industry are hurting companies’ efforts to secure future production.
Reuters reports that Lonmin – the world’s third-largest platinum producer – has so far stuck to its plans for capital expenditure, which is key to its aim of ramping up growth shafts to bring down the overall cost of producing an ounce of platinum.
The company is still expecting to spend US$450 million in 2012 and roughly the same next year, despite weak demand, cost pressures and safety stoppages imposed by government – but that could change, it warned.
Making these statements during a presentation at Lonmin’s Marikana operation, head of mining Mark Munroe that the company was ‘actively looking at options.’
Earlier this week, rival Aquarius Platinum said it planned to limit mining activities to concentrate on conserving cash and guarding its reserves until economic circumstances changed. Aquarius said it would suspend all non-essential capital expenditure.
Source: Reuters Africa. For more information, click here.