THE South African platinum and ferrochrome production of diversified resources group Xstrata grew in the September quarter, while its local coal production was flat, it said yesterday. In SA, Xstrata has joint ventures with Merafe in ferrochrome, with Anglo Platinum in platinum and with African Rainbow Minerals in coal. It also owns 100% of the Elandsfontein platinum mine, which is ramping up production. Earlier this year, Xstrata made a hostile bid for Lonmin, the world’s third-biggest platinum producer, but abandoned it last month because of uncertainty in financial markets. It still holds a 24,9% stake in Lonmin, raising speculation it might try again. Since October 1, when Xstrata withdrew its bid, platinum has weakened from $1048/oz to a recent low of $ 870/oz. Imara SP Reid said despite platinum’s advances on Monday the technical picture was still not positive, though sentiment had improved. James Moore of The Bullion Desk said while there was interest from bargain hunters, platinum was still vulnerable to selling if it failed to breach $925/oz. John Meyer of Fairfax said higher-cost South African platinum producers must be looking to close shafts, while lower-cost producers would cut costs and survive with the help of a weaker rand. “Norilsk’s Stillwater mine in the US may be on the closure list,” he said. Xstrata said platinum production rose 158% in the September quarter compared to the same period last year as volumes from the Elandsfontein mine increased. Xstrata produced 36250oz in the quarter, from 14068oz a year ago. Chrome production grew 4% to 308000 tons in the quarter because of the ramp-up of the new Lion ferrochrome smelter near Steelpoort. Coal production was 6,1-million tons in the quarter from 6-million tons a year ago.

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