Analysts have expressed doubts that Angloplat's production target of 3.5 million ounces of platinum by 2006 will be met, following the company's warning on Friday (4th July) that earnings were significantly down compared to the first half of 2002, Business Day reports.

The company, the second largest pgm producer in the world, announced on Friday that profits were down by 17 per cent, and that productivity rates were three per cent below the intended expansion rate for the first half of this year.

A Johannesburg mining analyst told Business Day about industry concerns:

'I doubt it will make its target. It is not just operational challenges that it faces, but also the challenge of financing black economic empowerment (BEE) projects, which are a necessary part of its expansion to get it to the target.'

The analyst explained that for targets to be met, a lot of investment would have to be made in BEE projects in order for the company to secure the rights essential for it to pursue expansion schemes.

The rand has also gained 15 per cent against the dollar this year, cutting revenue which goes back to the company after platinum sales in dollars are converted back into rands.

The analyst said 'if there is any problem getting enough finance, then there may be a problem; there is a combination of challenges as well as the rand.'

Mike Mtakati, an Angloplat spokesman, insisted that the target of 3.5 million ounces by 2006 was still a goal:

'Should there be any change on this we will advise accordingly. As we speak the target of 3.5 million ounces remains achievable.'