Xstrata has revealed that it is aiming to achieve platinum output of 300,000 oz per year at its Eland mine.

The diversified Swiss miner has invested R4.5 billion in plans to sink two decline shafts at the South African facility after the open-cast mining period comes to an end.

With the construction of a second concentrator included in the programme, Xstrata is hoping that platinum production levels at Eland could be doubled by 2014.

In addition, the company has the option to acquire a 50 per cent stake in five properties held in two projects belonging to Nkwe Platinum on the eastern limb of the Bushveld Complex.

Xstrata will make a recommendation to its board on any potential transaction by the end of the year after viewing the results of a bankable study of the Garatau project.

The move could be beneficial as the southern section of Nkwe's projects is located near Xstrata's large Lion ferrochrome smelter in Limpopo, Business Day reports.

Peet Nienaber, Chief Executive of Xstrata Alloys, told the news provider: "The eyes of this ore body have been taken and the scraps are left.

"If we use synergies between Nkwe and Xstrata Alloys we can make it work."

Nkwe offers resources of 20 million ounces and a target of 100 million ounces and purchasing a stake could add a further 300,000 oz per year.to Xstrata's output.

This would put it in contention to take Lonmin's world number three producer slot, while the end of a concentrate off-take agreement with Anglo Platinum in 2015 would allow Xstrata to build its own smelter.

Xstrata has a 25 per cent stake in Lonmin but cancelled its bid to take over the company in October 2008.

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Xstrata mulls chance to buy half of big platinum property (06/10/10) 

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