Anooraq announced on Wednesday (20th May) that it intends to improve production at Lebowa when it takes control of the platinum mine on 1st July, Business Day reports.

The platinum empowerment group is looking to move from explorer to junior miner after agreeing a R2.6 billion deal with Anglo Platinum to purchase 51 per cent of the mine.

According to the latest figures released by Anglo, refined platinum production at Lebowa fell 21 per cent last year to 74,200 oz as a result of safety-related shutdowns, worker shortages and a decline in head grade.

However, Anooraq Chief Executive Officer Philip Kotze revealed that the site could be mined for another 100 years and that output will be raised to 180,000 oz pgm this year and 270,000 oz pgm by 2013.

Furthermore, he noted that mining can take place at shallow depths above 650m for the next 35 years, thus removing potential geotechnical issues which are typical of deep-level mining.

Mr Kotze also revealed that one of Anooraq's main targets will be to change Lebowa's status as the highest-cost platinum mine in South Africa after cash-on-mine costs at the site rose 53 per cent to R13,390 per oz in 2008.

All the conditions for the deal between Anooraq and Anglo have now been agreed and all that remains is the approval of the former's shareholders, who are set to vote on 15th June.

Source:

Anooraq plans to boost Lebowa (20/05/09)

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