Anglo Platinum is planning to expand pgm output at its Mogalakwena facility by up to 69 per cent over the next five years, it emerged yesterday (14th April).

The company announced a new 400,000 oz per year target for the world's largest open-pit platinum mine, which produced 237,279 oz of refined platinum last year.

In addition, General Manager Ted Muhajir told reporters that the mine - which is located in the northern Limpopo province - should attain output of between 270,000 oz and 280,000 oz for 2010.

JP Morgan analysts Steve Shepherd and Allan Cooke explained that improving demand for pgms was undoubtedly the motivation for the move.

"We think Mogalakwena is now the group's flagship mine - promising to be its lowest cost source of pgms," they said.

"Anglo Platinum is the best positioned of the major platinum producers to respond to the improving pgms demand fundamentals that we and the platinum miners see."

The analysts estimate that the mine has reserves of about 52.4 million ounces pgm 4E (platinum, palladium, rhodium and gold) and resources of about 198 million ounces pgm 4E.

This figure is comparable with the entire inventory enjoyed in Zimbabwe by Impala Platinum, which is the second-largest platinum producer in the world, behind Anglo.

Meanwhile, Mr Muhajir also confirmed that Anglo may aim to transform Mogalakwena into an underground operation after its open-pit resources have been exhausted.

However, he noted that any plans to expand output further at the mine are restricted by its limited concentrator capacity, which has seen stockpiles gradually rising.

"I sometimes refer to this operation as that red Ferrari that can accelerate very quickly, but also apply its ABS brakes when necessary," he told Mining Weekly Online.

"In 2009, we put our foot on the ABS brakes and slowed down. But we have now been given the green light to accelerate."

Earlier this week, Anglo Chief Executive Neville Nicolau revealed that the company is now hoping to add between 100,000 oz and 200,000 oz to its original 2010 pgm production target of 2.5 million ounces.

Sources:

Anglo Platinum Plans to Expand Biggest Open-Pit Mine (Update2) (14/04/10)

Platinum 'free' at Angloplat's Mogalakwena mine (14/04/10)

Angloplat to boost output at SAfrica platinum mine (14/04/10)

AngloPlat's power house mine (14/04/10)

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