Xstrata confirmed today (5th May) that it enjoyed an 18 per cent year-on-year increase in pgm production during the first quarter of 2009.

The Anglo-Swiss miner confirmed that it produced 32,985 oz of platinum over the course of the three-month period, in comparison to the figure of 28,414 oz from 12 months earlier.

In addition, the company saw palladium output increase from 13,705 oz to 15,931 oz, while rhodium production was up from 3,348 oz in Q1 2008 to 4,881 oz in Q1 2009.

The rises are being attributed to the increased supply of 118,000 tonnes of UG2 ore to the mill and better feed grade at its Eland project, thus leading to higher recoveries.

However, one section of an Xstrata statement noted: "The improvement in production was offset slightly by a combination of heavy rainfall, which halted production at Eland for several days and adverse ground conditions at Mototolo, which affected the head grade."

The company also confirmed that its thermal and coking coal, nickel, zinc in concentrate and lead metal production volumes all increased on a year-on-year basis during the first quarter of 2009.

Xstrata hit the headlines last year after expressing an interest in buying Lonmin, the world's third-largest platinum producer, but an official bid never materialised.

Sources:

Xstrata reports drop in first quarter copper output while coal and platinum production rose (05/05/09)

INTERIM MANAGEMENT STATEMENT AND Q1 PRODUCTION REPORT (05/05/09)

Ÿ Adfero Ltd