Platinum mining giant Anglo Platinum (Angloplat), which has already shed 30 000 oz of the metal because of South Africa's electricity shortage, said on Monday that this could increase to as much as 150 000 oz.

Before the power crisis bit, the miner was on track to produce 2,55-million ounces of the metal, used to cut emissions in diesel vehicles, but 2008 refined production was now only likely to reach 2,4-million ounces, depending on the severity of the power crisis for the remainder of the year.

Joint acting CEO Duncan Wanblad said that this "best estimate" also took into account the 60 000 oz that Angloplat, the world's biggest producer, lost after the operation flooded in January, following excessive rains.

South Africa's mining industry suffered vast production losses after State-owned power utility Eskom told them on January 24 that it could not guarantee them power, leading to a week-long industry wide shutdown.

The struggling parastatal later notified the mining companies that they could begin ramping up to 90% of their previous power usage levels, which they continue to operate at.

While major gold producers said that operating at these power levels meant that they would produce less than 90% product than at full power, Angloplat believed it could sustain production at levels of at least 90% of normal production.

The 150 000 oz that it estimated that it would lose this year amounted to about 3% of its previous production forecast of 4,55-million ounces for the year.

Angloplat reported on Monday that its 2007 profit had risen marginally, in an environment of record metal prices, as because of production woes.

It reported that its 2007 profit rose 6,1% to R12,6-billion, compared with the 2006 figure of R11,9-billion, after the drop in output.

The news brought about a rapid sell-off of its shares, with the firm's stock trading 3,5% down by 09:20, at R1 090 a share. However, things had stabilised by late afternoon trade, with its stock closing 1,7% up, at R1 148 a share.

Platinum prices were offset by refined production that was 12% lower than the previous year, at 2,47-million ounces, owing to lower mine output and movements in process pipeline stocks.

South African mining companies took significant production knocks after the Department of Minerals and Energy temporarily shut shafts after fatalities in 2007, leading Angloplat to slash its production targets for the year for a second time.

Angloplat said that headline earnings decreased 3% to R52,39 a share, as a result of an increased weighted average number of shares in issue in 2007.

The firm declared a final dividend of R23 an ordinary share, maintaining a dividend cover ratio of 1:0.

"Our record financial performance was driven by strong demand and record metal prices, despite the tough operating
condition," joint acting CEO Norman Mbazima said.

Angloplat said that it expected refined platinum production in 2008 to drop even further, to 2,4-million ounce, mainly owing to State-owned power utility Eskom not being able to supply South Africa's mines with enough electricity.

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