Lonmin says that work being carried out on its primary smelter has proved successful so far.

In a statement the firm said that sales and mine production would be largely unaffected, and that the development was continuing on schedule.

The reheating process is slated to begin on 7th January 2005, while Lonmin expects the first matte tap to be by the end of January in a process estimated to cost around $5 million.

The platinum miner also says that it expects the cost of running the pyromet furnaces and tolling material through Impala to swallow a further $11 million.

Chief executive Brad Mills commented: "I am satisfied that the current smelter situation has been managed effectively. The full year cost impact of the incident has been contained at about R60 per pgm oz of sales.

"This incident is regrettable but it is reassuring to confirm that the incident was unrelated and much less serious than the previous smelter incident experienced in December 2002.

"A complete review of our operational risks and a new hazard audit of the entire smelter complex is being conducted with the participation of independent professionals with a view to codifying the new techniques learned in the implementation of new smelter technology. As a company we remain committed to achieving safe, low cost operations," he added.

Lonmin anticipates producing 1,460,000 oz of total pgms for the full year to the end of September 2005, including 765,000 oz of platinum.