Thu, Dec 18, 2014, 3:01 PM EST - U.S. Markets close in 59 mins.

Recent

% | $
Quotes you view appear here for quick access.

UBS ETRACS CMCI Lng Platinum Tot Ret ETN Message Board

  • luckedude777 luckedude777 May 20, 2008 8:26 AM Flag

    Largest Platinum Supplier WARNS!

    Anglo Platinum CEO’s main priority is power supply

    Anglo Platinum CEO Neville Nicolau says that a secure power supply is key to the firm’s planned expansions.

    Author: James Macharia
    Posted: Tuesday , 20 May 2008

    JOHANNESBURG (Reuters) -

    Securing power supply to meet mine expansions targets would be a key priority for the new Chief Executive Officer at South Africa's Anglo Platinum (Angloplat) <AMSJ.J>, the world's biggest producer of platinum.

    The current power crisis in South Africa was posing a risk to planned expansions, said CEO Neville Nicolau, who also cited safety, mining rights, environmental approvals and skills as other key issues in his plans to boost the company's production.

    "We need power for future projects and need to secure it now. Power is a problem and we have to try to agree with Eskom to get power supplies," Nicolau told Reuters in an interview.

    State utility Eskom [ESCJ.UL] has been unable to meet power supply to South African mines, forcing them to shut for five days in January. The shut down could see output fall by 200,000 ounces this year, while other hiccups may dent output even further, metal refiner Johnson Matthey said on Monday.

    Power supply in South Africa will remain tight with mines receiving around 90-95 percent of their requirements until 2012.

    Nicolau, who takes over on June 1, said he is learning the platinum market having spent 30 years in gold mining, eight of those at AngloGold Ashanti <ANGJ.J>.

    "I'm aware there is a very high level of future power needs, and I would be trying to find out what (power) is available. I have to understand the platinum market and what expansion plans are appropriate for Angloplat, in terms of power, mining licenses, people skills and environmental agreements," he said.

    Angloplat, which produces about 40 percent of the world's platinum supply, has been criticised by analysts for falling short of its previous lofty production targets.

    Angloplat which consistently forecast robust demand for platinum -- used in jewellery and auto catalysts to clean exhaust fumes -- said at its 2007 yearly results in February that is still aims at growing output at 5 percent yearly.

    Angloplat's 2007 refined platinum ounces fell to 2.47 million ounces from 2.82 million ounces in 2006, mainly due to safety issues. This year, the company said output would be even lower at 2.4 million ounces, mainly due to the power crisis.

    "I will have to evaluate the company, the opportunities, the planned capital projects and come up with an appropriate target. If it means planning for 3.5 million ounces a year then that will be the target, but it has to be realistic," he said.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
PTM
13.1571+0.1955(+1.51%)2:58 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.