Loading...
See More

Norilsk eyes SA platinum sector

Feb 07 2012 15:37 Reuters

Related Articles

Platinum outlook dims

Implats strike drags on despite layoffs

Implats to replace, rehire fired workers

Anooraq gets lifeline from Amplats

Implats fires 17 200 for illegal strikes

Shabangu defends safety stoppages

 
Cape Town - Russia's Norilsk Nickel, the world's largest producer of nickel and palladium, is looking at platinum mine acquisitions in South Africa to boost its PGM output over the next decade, a senior official said on Tuesday.

Norilsk Nickel is already in South Africa, which accounts for about three quarters of the world's platinum output, where it has a 50/50 joint venture in Nkomati nickel mine with African Rainbow Minerals [JSE:ARM].

The mine, about 300km east of Johannesburg, produces by-products of copper, cobalt, PGMs and chrome.

"There are some potential projects here ... and we under current due diligence of some projects in South Africa for maybe a prospective acquisition deal here," Roman Panov, Norilsk's director of international production assets told Reuters on the sidelines of a mining conference.

"We hope that the deals can be for 2012 or 2013. It is too early to make an announcement right now, but we are extensively working this market. It is different companies in the PGM group, but primarily platinum," he said.

As part of a broader drive to diversify its commodity and regional presence, Panov said Norilsk was also eyeing projects in mineral-rich southern African countries.

"We are looking at potential projects in Zimbabwe, DRC, Zambia and Botswana, which are potential regions for further development," he said.

Platinum production in South Africa is dominated by Anglo American's platinum unit, Impala Platinum and Aquarius Platinum.

However, output is likely to end up lower than forecast this year due to increasing labour and safety stoppages that have dampened share prices and boosted costs.

Panov said the potential targets were both greenfields and brownfield mines, although Norilsk was focusing on the quality and quantity of reserves held underground.

He said should Norilsk's PGM strategy be realised, it could emerge as a top three producer globally within a decade.

Panov also said Norilsk was granted six exploration licences in the Tati region, and expected to finalise an exploration campaign at the end of next year as it tried to extend the life-of-mine at Tati, which is expected to be depleted in 2015.

Norilsk already operates Tati Nickel in Botswana, which includes the Phoenix open pit and Selkirk underground nickel mine, with 2012 production seen 10% up from last year's 11 000 tonnes output.
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

BMW drift battle: M235i vs. speedway bike

Watch this insane drift contest with four-times dirt-track World champion Karl Maier riding a speedway bike against a BMW M235i.

 
 

Men24.com

Want to start talking dirty?
Everyday struggles of naturally skinny guys
And this year's Miss Bumbum title goes to...
How to maintain your mo, bro

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...