Lonmin Boasts Half-Year Record Profits

Lonmin, the world's third largest primary platinum producer, has achieved record half-year revenue and earnings despite market constraints in South Africa.

With revenue climbing to US$907m, the company recorded a 44 percent increase from October 2007 to 31 March 2008 compared to the same period a year earlier.

Total refined production for the period stood at 282,650oz of platinum and 536,128oz of total platinum group metals.

Total mining production for the six months came to six million tonnes of ore, a 13 percent decrease from the same period a year before.

Production at the company's Limpopo Baobab shaft operation declined by 32 percent from the same period, producing 264,000t of ore.

Lonmin's joint Pandora venture, which was affected by repair work, also decreased in output, contributing US$11m of profit after tax during the half-year.

Lonmin's results come during a period in which South Africa's mining industry faces electricity shortages.

Since February 2008, the company has been operating within a 90 percent normal electricity consumption constraint, imposed by South African electricity public utility Eskom.

By Alex Hawkes