Impala Platinum is hoping to boost its platinum output at its eponymous mines by almost 70,000 oz in its next financial year, it has been confirmed.

The world's second-largest platinum producer revealed this week that it produced 871,000 oz in the 12 months to 30th June at the various operations.

However, the company expects this total to rise to about 940,000 oz in FY11, with overall annual output expanding from the latest figure of 1.74 million ounces to 2.1 million ounces by 2014.

In an interview with Moneyweb, Chief Executive David Brown revealed that Impala is hoping to bounce back from a number of safety-related incidents which occurred in the previous financial year.

There were 15 fatalities at the 14 Shaft at the company's section of the Rustenburg mine, which resulted in closures and an output loss of 80,000 oz, while a two-week strike also affected production.

Mr Brown told the news provider: "We are seeing Zimplats and Mimosa growing.

"We are seeing Two Rivers growing, and we are also going to see a claw-back of some of those ounces we lost as a result of those incidents come back in 2011. So overall the growth profile is very positive going into 2011."

Impala is planning to invest R20 billion over the next four years to reach the 2.1 million ounces target, having already completed the Phase 1 expansion of the Ngezi project in Zimbabwe.

Mr Brown revealed that the company is taking a "modular expansion" approach to its operations in the country and that Ngezi could offer about 300,000 oz of platinum per year by 2014.

"We put in relatively smaller amounts of capital with good payback periods and very positive NPVs, even on the risk-adjusted basis," he added.

"I think it's also that having been operating there for ten years one builds up a bit of confidence and certainly our dialogue and our interactions are generally very positive."

The Phase 2 expansion at Ngezi is now underway and will take Impala's spending in Zimbabwe to more than $1 billion, despite concerns about the government's empowerment regulations.

At present, all foreign-owned companies must ensure that local businesses have a 51 per cent stake of their equity within five years.

Mr Brown, who believes that the firm's Zimplats vehicle could eventually offer one million ounces of platinum per year, wants to receive 'empowerment credits' in exchange for giving up some of its reserves.

"It is our firm belief that at this time, Zimbabwe's greatest need is for increased levels of foreign direct investment to create more employment in the country," he said.

"We therefore urge the authorities to implement this law in a way that does not compromise Zimbabwe's desire to be seen as a preferred investment destination."

Mr Brown also dismissed criticism that Impala is falling behind in expansion plans for South Africa, telling MiningMX that the delivery dates are now "cast in concrete".

Impala Platinum is second only to Anglo Platinum in terms of annual production of the precious metal.

Sources:



Implats plans R20bn upscaling (27/08/10)



Mining Interview: Implats full-year results: David Brown -CEO, Impala Platinum (26/08/10)



Zimplats commits US$1bln to Zimbabwe (26/08/10)



Impala defends tardy expansion, risks (26/08/10) 

© Adfero Ltd