Lonmin, the world's third-largest primary platinum producer, is expanding annual output to 950,000 troy ounces by 2015 from existing projects.

Mark Munroe, executive vice-president for mining, told reporters that the company is spending $400 million a year in capital expenditure up to 2015.

He said demand for platinum will remain strong, further helping the miner's expansion plans.

The main ramp-up in production comes from the miner's Marikana operations. According to Reuters, the second furnace at this plant is on course to come online next year.

"We are currently on the execution stage. We are still focused on having the furnace up and running by May 2012," Frans de Beer, vice-president of smelting and refining, is reported as saying.

He also said the number one furnace was running better and that the company is looking at a third.

Lonmin is getting its production back on track after strike action at its Karee operations disrupted output earlier this year.

In June, the company revised down its full-year production estimates to the end of September from 750,000 platinum ounces to around 720,000 oz.

Sources:



Lonmin: Expansion Options Open Following Marikana Growth (05/07/11)



UPDATE 1-Lonmin says Number 2 furnace online by 2012 (05/07/11)

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