MARIKANA, South Africa, July 5 (Reuters) – Platinum miner
Lonmin is reviewing its closely watched spending plans,
its head of mining said on Thursday, in the latest evidence that
short-term pressures on the industry are hurting companies’
efforts to secure future production.
Lonmin, the world’s third-largest platinum producer, has so
far stuck to its plans for capital expenditure, which is key to
its aim of ramping up growth shafts to bring down the overall
cost of producing an ounce of platinum.
It is still expecting to spend $450 million in 2012 and
roughly the same next year, despite weak demand, cost pressures
and safety stoppages imposed by governments – but that could
change, it said.
Mark Munroe, head of mining for Lonmin, said during a
presentation at Lonmin’s Marikana operations that the company
was “actively looking at options”.
Earlier this week, rival Aquarius Platinum said it
planned to limit mining activities to concentrate on conserving
cash and guarding its reserves until economic circumstances
changed. Aquarius said on Wednesday it would suspend all
non-essential capital expenditure.
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