Platmin is negotiating with five major platinum producers to build a 500,000 oz smelter near one of the firms' existing operations, it has been announced.

The deal would cut the estimated $250-$300 million cost of constructing the smelter by a third and would eliminate the need for an environmental impact study, Platmin Chief Executive Officer Ian Watson said.

Platmin is considering building a 20MW smelter of its own because it does not want to have to rely on smelting capacity from one of the larger miners, he explained.

This is an issue, he continued, since with a raft of junior platinum projects approaching completion, smelter space for toll treatment could be at a premium.

"It's too risky to be out there with 500,000 oz of output," Mr Watson told reporters in Johannesburg.

However, should negotiations with the majors over an independent smelter prove unsuccessful, Platmin would secure good smelting rates with the companies who are in need of low chrome material to maintain their smelting operations, he added.

Source:

Platmin talks to Pt majors about smelter plan, 28/11/07
http://www.miningmx.com/platinum/694606.htm

Platmin talking to majors about own pgm smelter, 28/11/07
http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=40832&sn=Detail

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