Impala Platinum (Implats) has announced a significant rise in platinum production for the 2004 financial year.

The world's second largest platinum miner produced 1.96 Moz of platinum, an increase of 17 per cent on 2003.

However, due to the surging strength of the rand, the rand revenue per platinum ounce declined by nine per cent.

It means that even with the increased output and improving cost management, the 24 per cent appreciation of the rand led to an earnings declining of 13 per cent to R2,963 million.

In terms of operational performance, Implats described the year as "excellent" with mining operations at Rustenburg and in Zimbabwe returning record productivity.

Implats CEO Keith Rumble commented: "Implats has continued to deliver in line with its stated performance objectives. Metal output increased from Impala Platinum, Zimplats, Mimosa and IRS(Impala Refining Services).

"This robust performance was overshadowed by the strength of the rand. The only operational lowlight was the slower than expected ramp-up at Marula. We are confident though that we have put plans in place to address this."

Looking forward, Mr Rumble noted that market fundamentals for platinum are expected to remain sound next year, with automotive demand remaining the key driver, alongside a recovery in jewellery demand.