Reuters cited Mr Alex Mhembere CEO of Impala Platinum's Zimbabwe unit Zimplats said that the company's USD 460 million expansion project due for completion in 2015 could be delayed if platinum prices remain weak. USD 223 million had so far been spent on the Ngezi 2 expansion.

Mr Alex Mhembere said that Zimplats, which is expanding its operations to increase output from about 180,000 ounces a year to 270,000 ounces annually has been hit by low metal prices resulting in 10% decline in revenue to USD 473 million in the full year to June 2012 from USD 527 million in 2011.

Economic weakness this year has eroded global demand for platinum used in jewellery and autocatalysts, leaving the metal facing an anticipated overhang of as much as 6.5% of total demand this year its biggest in 10 years.

Bloodshed at a major South African mine last week has already sent platinum to its highest price in 3-1/2 months and signs of the turf war between unions spreading look set to lift it further as investors refocus on supply risks rather than feeble demand.

Source - Reuters

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