Lonmin has announced plans which could see it increase its smelting and refining capacity by 50 per cent.

The platinum firm says it has commissioned a feasibility study examining the potential for boosting the existing capacity of 1.3 million ounces of platinum to anything up to two million ounces by 2010.

In a statement the firm said the move offered "the potential to be an attractive brownfield expansion opportunity for Lonmin".

Costing between $300 million and $350 million, the move is part of the miner's wider strategic development.

The boost in metallurgical capacity could facilitate expansion of its mine projects and also raise its profile in the South African smelting and refining market.

Further news is expected once the feasibility study, costing around $10 million, is completed in around a year.


Ÿ Adfero Ltd