Inco says it expects to produce 400,000 ounces of pgm's this year at its North American sites.

The president and COO of the mining outfit, Peter C. Jones, says that he is confident in the firm's prospects.

Outlining plans to hedge 29 per cent of its platinum production at $634/oz as of June 30, 2004, Mr Jones said that the company's holdings were set to yield a good return.

"With Voisey's Bay and Goro, we have ambitious plans over the next few years," he told Mineweb.

"But I want you to understand that our strong property positions in the Sudbury Basin, in New Caledonia and in Indonesia - and the exploration potential they hold - give us the ability to expand well beyond 2007."

In its latest results for the second quarter, Inco, the world's second largest producer of nickel, produced 74,000 troy ounces of pgms - putting it around 23 per cent ahead of forecasts given by the company back in April.

The latest comments from Mr Jones underline the growing confidence at the firm, which has enabled it to stay on course for the 400,000 troy ounce full-year pgm production target.