South Africa's Impala Platinum (Implats) expects its platinum production for the 2006 fiscal year to be similar to that produced during the 2005 year.

The company, which is the second largest platinum producer in the world, had expected production to increase, but said it has been hampered by a number of factors.

Implats produced 1.85 million ounces of refined platinum during the 2005 financial year.

"Overall production will be relatively flat compared to last year," the firm's chief financial officer David Brown told Reuters.

"Our production level will not be as high as we had originally anticipated. We were looking at 1.92 (million ounces)."

Despite reaching a record level, production at the company's Impala Lease Area was also below expectations, although no figures were released.

During the previous financial year, production in the area hit a record high of 1.1 million ounces.

A combination of grade problems, slower improvements in mining efficiencies and three lost production shifts due to strike action by South Africa's biggest union Cosatu led to production falling below anticipated levels.

Implats said another cause for lower production was lower than anticipated receipts at its refining unit.

Ÿ Adfero Ltd