JOHANNESBURG (miningweekly.com) – The world’s largest platinum producer Anglo American Platinum (Amplats) has confirmed plans to refine and sell 2,6-million ounces of the precious metal in 2011, an increase of more than 100 000 oz on the 2,57-million refined ounces produced and the 2,52-million ounces sold in 2010.

The group would also spend up to R8-billion on stay-in-business capital and on waste stripping at Mogalakwena.

Speaking at the group’s annual general meeting on Monday, CEO Neville Nicolau described 2011 as the third year in a “long turnaround process” and added that prudent capital expenditure and allocation would remain central to the management of its balance sheet.

The target was to produce the additional volume at around the same level of cost achieved in 2010, which he said was dependent on a further improvement in productivity and in grades. During 2010, unit cost inflation was maintained below South Africa’s consumer price index and flat in real terms at R11 700/oz.

The JSE-listed company had set a productivity target of 7,3 m² an operating employee a month, which would be better than the 7 m² achieved last year.

The increase in output would be pursued against an expectation of a balanced market and an average price of at least $1 800/t. Nicolau told Bloomberg that the effect of the recent Japanese earthquake and tsunami on the market should be “relatively small”, explaining that the bulk of Amplats’ output went into European diesel auto catalysts.

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