Lonmin Plc - Feasibility Study to expand Metallurg
LON
LOLMI
Lonmin Plc - Feasibility Study to expand Metallurgical Capacity
Lonmin Plc
(Incorporated in England and Wales)
(Registered in the Republic of South Africa
under registration number
1969/000015/10)
JSE code:LON
Issuer Code:LOLMI & ISIN:GB0031192486
("Lonmin")
28 February 2006
Lonmin Plc
Feasibility Study to expand Metallurgical Capacity
Lonmin is pleased to announce today, that it is commissioning a feasibility
study to increase its smelting and refining capacity from its current forecast
of 1.3 million ounces of Platinum per annum in 2010 (2.5 million ounces total
PGMs) to between 1.75 and 2.0 million ounces of Platinum per annum (3.5 to 4
million ounces total PGMs). This has the potential to be an attractive
brownfield expansion opportunity for Lonmin at a capital cost expected to be of
the order of US$300-$350 per annual PGM ounce produced, approximately one third
of the cost of new greenfield capacity.
The additional metallurgical capacity would enable the further expansion of
Lonmin"s mine development projects and also allow Lonmin to enter the attractive
custom smelting and refining market for PGM concentrates in South Africa.
We currently estimate the capital cost for such an expansion would be between
US$300 to $350 million.
The feasibility study will take approximately 12 months and cost around US$10
million.
Enquiries:
Alex Shorland-Ball +44 (0) 207 201 6055
Date: 28/02/2006 09:00:04 AM Produced by the JSE SENS Department
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