South African mining group Mvelaphanda Resources could increase its stake in Northam Platinum.

Mvelaphanda has reported a doubling of its operating profit in the six months to end of last year from RN105 million (US$14.6 million) from RN50 million.

Chief Executive Pine Pienaar explained to Reuters that the firm was now aiming to transform into a mining outfit from a holding company and could increase its 22.3 per cent stake in Northam Platinum. Currently Anglo Platinum also holds 22.5 per cent of the firm.

He said: "It is not a secret, and it makes logical sense for us to try to acquire a bigger stake in Northam - to acquire AngloPlat's 22 per cent stake and give us in excess of 50 per cent - and be the first time we control an underlying asset."

No exact time scale was given for the deal, but Mr Pienaar explained that he hoped it would conclude by the end of the year.

Northam Platinum earnings more than doubled in the six months to end December to RN661 million (US$ 92.4 million).

Ÿ Adfero Ltd