Lonmin has agreed two separate deals allowing it to build chrome recovery plants at its Marikana operation, it was confirmed today (2nd March).

The world's third-largest platinum producer will use the new facilities at the South African site to treat tailings from the concentrators at the UG2 reef.

In addition, the company confirmed that it is exploring the possibility of building plants to recover pgms after the initial process of removing the chrome.

"These agreements mark the continuation of a trend across the industry as pgm producers look to realise value through chrome by-product revenues and improved pgm recoveries," said Chief Executive Ian Farmer.

The contracts, which have been agreed with the Xstrata-Merafe Chrome Venture and ChromTech, will see the plants come into full production in the second half of Lonmin's 2011 fiscal year.

Meanwhile, Mr Farmer also told Dow Jones this week that South Africa's ongoing struggles to provide sufficient electricity will represent a major challenge for pgm producers this year.

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UPDATE 1-Lonmin to build chrome recovery plants (02/03/10)

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