Anglo Platinum (Angloplats) operations manager Dorian Emmett has said that the company's increase in platinum stockpiles should not be a cause for concern.

The world's largest platinum company announced in quarterly results that its pipeline stock of refined platinum had increased by 205,000 oz, with some analsysts wary at the levels of precious metal being stockpiled.

However, Mr Emmett said a much better than expected commissioning of the company's Polokwane smelter played a large part in the rise, leading to a stockpile increase worth over 400 million rand.

Inventories have increased in value form R146.3 million during the first half of 2002 to R665.9 million for the same period this year.

Chief executive Ralph Havenstein said there should be a significant release of pipeline stock in the second half of 2003.

This could result in production totalling 2.3 million ounces by the end of the year, he said.

Meanwhile, Angloplats has also reported a slower than predicted commissioning at the Anglo Platinum Converting Process (ACP) project and problems at the slag-cleaning furnace, due to the termination of a smelter-leasing agreement with Xstrata.

Mr Havenstein said problems at the plant were due to environmental concerns regarding the amount of sulphur dioxide released from the plant: