Platinum Australia scouting for mines Email Print Normal font Large font May 17, 2006 - 5:59AM
Advertisement AdvertisementPlatinum Australia Limited, which aims to produce half a million ounces of platinum group metals a year in five years, said it was scouting for more projects in South Africa and elsewhere.
The company, listed on the Australian Stock Exchange and the Alternative Investment Market in London, has two mining projects in South Africa and one in Australia. It plans to start production by the middle of the next year.
"We are looking for other projects right now. We are in discussions with number of people on different things," John D Lewins, the company's managing director, told Reuters on the sidelines of an industry meeting during London's Platinum Week.
"South Africa is primarily our main focus. We are looking for other similar projects like Smokey Hills," he said.
Platinum Australia was also looking for viable mining projects in Zimbabwe and Mongolia, he added.
The company's mine sites have 6.4 million ounces of reserves, including 1.0 million at Smokey Hills and 3.4 million at Kalplats, both in South Africa. Its Panton project in Australia has 2.0 million ounces.
The company expects to produce 40,000 ounces of platinum and palladium in 2007 and 230,000 by 2009.
Lewins said he was not interested in deeper mines because of higher costs and other operational difficulties.
"We don't see that's something that we want to get into at this point," Lewins said.
Its current projects involve open cast mines.
Platinum Australia will start ore production at its Smokey Hills project in September, concentrate production in the third quarter of 2007 and develop an underground mine after two years.
The mine would produce 100,000 to 150,000 ounces of platinum group metals each year after stabilising operations, he said.
Its second project in South Africa, Kalplats, has potential to produce 195,000-280,000 ounces a year. Concentrate production would begin in July 2008.
The company's Australian project could initially produce 50,000 ounces of platinum group metals. Production at the site would start in the second half on the next year, he said.
