South African miner African Rainbow Minerals (ARM) is to join forces with Impala Platinum (Implats) in a new platinum mining project.

The R1.2 billion Two Rivers project is set for launch in May, and according to the chief executive of ARM, funding for it is "imminent".

"The finalisation of the funding is imminent and we hope to start construction in May this year, with a target of nearly 230,000 ounces of pgms per year by November 2006," chief executive, Andre Wilkens, explained.

ARM already owns 55 per cent of Two Rivers, a project that is key to its growth plans to expand pgm, according to Reuters.

"We want to double our platinum and nickel production in the next three to four years, and double the output of iron ore and manganese by 2010," Mr Wilkens added.

It is hoped pgm production will increase sixfold by 2008 to 600,000 ounces and pgm output for 2004 is estimated at just under 100,000 ounces.

Mr Wilkens' comments and information on the deal were presented to a gathering of businessmen in Johannesburg.

The company also revealed its joint venture with top platinum producer Angloplat was on track and operating at 74 per cent of full production.