SouthernEra Resources has stated that the surge in value of the rand will not affect its flagship platinum project in Messina.

Despite the South African currency's continuing upward climb, which made the firm's nearby Klipspringer diamond mine economically unviable, the company insisted its platinum project is secure.

SouthernEra chief executive, Patrick Evans, told Reuters that Klipspringer was always a marginal site susceptible to currency fluctuations.

'Messina is completely different. The margins at Messina are quite robust. Even at current rand levels, Messina still has a margin of more than $100 an ounce,' he said.

The rand increased by 40 per cent against the dollar in 2002 and 28 per cent in 2003, dramatically increasing operating costs and slashing profit margins.

It is anticipated that Messina will produce 160,000 ounces of platinum group metals this year, Mr Evans added, of which 55,000 ounces would be platinum.

By 2005, platinum output should rise to 85,000 ounces out of total of 200,000 ounces of pgms.