Angloplats has released further details on the breakdown of the smelter at Polokwane, which has hampered operations in recent weeks, while promising to explore contingency plans.

An investigation into the smelter revealed that it deteriorated as a result of a single waffle cooler failing, gradually impacting on the furnace – with further work necessary to ensure other waffle coolers work effectively.

In a statement Angloplats said that "production volume for 2005 is likely to be affected and unit costs will be higher due to transport and possible toll treatment costs".

However, the platinum major says maintenance work was necessary on the smelter already, with scheduled work for 2006 now potentially being brought forward.

Angloplats says it expects that the work will be complete by the end of November, with normal smelting operations resuming by the end of the year, but it says it will release more detailed figures on the impact on production when it has finalised contingency arrangements.

If no alternative smelting facilities are used, the problem at Polokwane could result in a loss of 150,000 ounces of platinum production in 2005. However, the company stresses that this analysis does not take into account the potential use of excess smelter capacity elsewhere.

The firm said it would be seeking to "minimise the effect of the smelter shutdown on metal flow and annual production and will utilize excess industry smelting capacity where possible".

Ÿ Adfero Ltd