Tuesday, 30th May 2006 (3065 views)

One of the world's biggest gold producers has said it might consider becoming involved in platinum group metals in the future.

Although South African firm Gold Fields made the admission, it added it had no immediate plans lined up for an acquisition in the pgm industry.

According to Reuters, the company's chief executive Ian Cockerill made the announcement in response to a possible move for Lonmin, the world's third largest platinum producer.

"I think a judicious exposure to pgms in this company is not to be laughed at, it is something to be looked at very, very seriously," said Mr Cockerill.

"If one looks at the fundamentals for platinum over the next 20 to 30 years they are looking extremely good."

Lonmin, which is listed in London but has most of its operations in South Africa, recently announced that it plans to step up production by almost a third over the next few years.

Mining activity at its Marikana mine will be expended and it will also be opening a new operation at Limpopo, expected to begin in 2007. A 30 per cent increase in production from current levels is predicted.

 

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