Lonmin Platinum has downgraded its projected output of platinum, in response to tough operating conditions in South Africa.

Previous projections from the firm indicated that production at its operations by 2012 would stand at 1.4 million ounces.

However, in the latest quarterly trading report Lonmin Platinum has adjusted expected output to 1.2 million ounces.

The firm also reiterated its output forecast for 2008 of 900,000 oz, which although up from the figure of 793,584 oz in 2007, nonetheless was lower than expected when it was first announced last month.

It had been hoped that following a shift in mining to a section of the Marikana mine, where the ore is harder to process, during 2007, production levels would recover in the last year.

A statement from the firm said: "2008 will be a year of consolidation as we continue to grow our mechanised mining at Marikana with forecast production increasing from our mechanised operations to around 17 per cent of underground ore mined at Marikana."

It added: "Our growth in the period to 2012 will come primarily from the development of our mechanised shafts at Marikana and the completion of the Limpopo eastern expansion."

Source:

Lonmin pre-tax profit up 11.4 pct, shares jump, 14/11/07
http://uk.reuters.com/article/companyResultsNews/idUKL1468828920071114

Full Year Results 2007, 14/11/07
http://www.lonmin.com/assets/pdf/final%20full%20year%20results%202007%20announcement.pdf

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