Lonmin to Invest $2bn in Platinum Expansion

10 May 2011 (Last Updated May 10th, 2011 18:30)

UK-based platinum firm Lonmin is planning to invest about $2bn to restart its mines in South Africa and increase its production. The firm will spend about $400m a year to increase annual production to 950,000 platinum ounces by 2015. Earlier, Lonmin suspended mining operatio

UK-based platinum firm Lonmin is planning to invest about $2bn to restart its mines in South Africa and increase its production.

The firm will spend about $400m a year to increase annual production to 950,000 platinum ounces by 2015.

Earlier, Lonmin suspended mining operations at Marikana in South Africa and has also shut down Limpopo underground operations, as slowing economies resulted in a six-year surge in metal prices, reports Bloomberg.

Lonmin CEO Ian Farmer said the firm will re-examine Limpopo and reactivate its assets.

Xstrata owns about 25% of Lonmin, whose assets also include the Bushveld complex in northern South Africa.