[miningmx.com] — ANGLO Platinum (AngloPlat) will produce 2.5 million ounces (m oz) of platinum this year and increase this to 2.6m oz during 2011, according to CEO Neville Nicolau .
Nicolau said the group’s longer-term production profile would be determined by the state of the market as well as specific factors.
These included the success of AngloPlat’s attempts to develop the overall market as well as a strategic assessment of what portion of that market it should aim for.
He told Miningmx: “Our current assessment is that we are looking at a total annual growth rate in the platinum market of about 3%.
“We reckon we can increase output by about 100,000oz annually over the next four years, which would take us to a yearly production level of 2.9m oz.
“After that our rate of growth would slow slightly and we would get to a production level of about 3.2m oz/year in 10 years’ time.
“There are no real constraints that would prevent our operations achieving that level of growth if the market conditions are right. I need to stress this is our current assessment. This time next year we could see things differently.’
Nicolau added that AngloPlat would try to influence the development of the platinum market in key areas, and singled out fuel cells as one area where demand could increase.
The platinum industry has been talking about the development of fuel cells since the mid-1980s, when vehicles powered by fuel cells were viewed as a viable development.
Nicolau and marketing head Sandy Wood indicated the new areas of interest are the use of fuel cells for stationary and/or portable power plants – such as back-up generators for cellphone towers – as well as specialist uses like electric forklifts used in huge warehouses.
Nicolau said: “For the past 10 years nobody has really done anything about fuel cells. We have set up a joint venture with Johnson Matthey to develop fuel cell technology.
“We are miners. We don’t want to build fuel cells but we do want to influence the market for them and we are being proactive about it.’
Nicolau said AngloPlat was also getting involved in trying to promote greater use of diesel fuel in the United States, where the poor image of diesel passenger cars has led to minimal market penetration compared with Europe.
Diesel engines use far more platinum in the autocatalyst and particle filters required for their exhaust emissions systems than petrol-driven cars, which can substitute expensive platinum with cheaper palladium.
Wood said AngloPlat expected the platinum price to average at least $1,500/oz for the rest of 2010. He was optimistic about the recovery in world automobile production, expected to return to 2008 levels during 2010 led by China and “rest of the world’ markets.
Turning to the production side, Nicolau said the additional output would come from AngloPlat’s lowest-cost mines such as the opencast Mogalakwena mine and, it would appear, the Unki mine in Zimbabwe.
Nicolau said the development of Unki was going well and the mine would start production before the end of 2010.
He said the first phase operation would produce 60,000oz of platinum annually. However, there were two further possible expansion phases which could be implemented, taking full production to 180,000oz/year.
“These are nice, low-cost ounces and the way to manage costs in the long-term is through strategic asset management. Why go for expensive, deep-level developments when you can mine lower-grade but shallower ore?’
Asked whether AngloPlat had longer-term objectives to expand further in Zimbabwe, Nicolau replied: “Unki is a foot in the door in Zimbabwe.
“If you are active in the area, you are better placed to take advantage of any opportunities that may come along.
“I have nothing specific in mind at this time but if we are not there learning how to mine and operate in the region, we might lose out on future opportunities.’
