Eastern Platinum (Eastplats) has said that it is looking to deal with the debt situation of Johannesburg-based platinum producer Barplats.

Eastplats took a majority stake in the platinum producer earlier this year.

Auditors of Barplats have already expressed concern about the financial situation of the firm, owing to net liabilities of R49.2 million at the end of 2005.

It also has outstanding loan repayments of R103.2 million and R36.2 million due to be paid to Nedbank and Impala Platinum respectively later this year.

"We are looking at innovative ways for Barplats to close that debt, ways that are beneficial to us," Ian Rozier, chief executive of Eastplats, told industry publication Mineweb.

"Barplats could start paying it off, and it would do, but we would prefer to get [the debtors] out of our lives," Mr Rozier added.

"We might assume that debt, take it over, and refinance it."

Eastplats is also reportedly looking at investing a further $100 million into the mine over the next three years in a bid to increase production.

Eastplats was formed almost a year ago as a joint venture between Elgin Resources and Jonpol Explorations.

Ÿ Adfero Ltd