28th Feb 2006 07:00
Lonmin PLC28 February 2006 Lonmin Plc Feasibility Study to expand Metallurgical Capacity Lonmin is pleased to announce today, that it is commissioning a feasibilitystudy to increase its smelting and refining capacity from its current forecastof 1.3 million ounces of Platinum per annum in 2010 (2.5 million ounces totalPGMs) to between 1.75 and 2.0 million ounces of Platinum per annum (3.5 to 4million ounces total PGMs). This has the potential to be an attractivebrownfield expansion opportunity for Lonmin at a capital cost expected to be ofthe order of US$300-$350 per annual PGM ounce produced, approximately one thirdof the cost of new greenfield capacity. The additional metallurgical capacity would enable the further expansion ofLonmin's mine development projects and also allow Lonmin to enter the attractivecustom smelting and refining market for PGM concentrates in South Africa. We currently estimate the capital cost for such an expansion would be betweenUS$300 to $350 million. The feasibility study will take approximately 12 months and cost around US$10million. Enquiries: Alex Shorland-Ball +44 (0) 207 201 6055 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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