Obuasi (Ashanti Region) - Ashanti Goldfields Company (AGC) has received approval to start platinum exploration this year in the South African province of Limpopo, a large source of the product.

The project is a joint venture, with Timeng Mining and Exploration of South Africa with 60 per cent shares while Ashanti holds 40 per cent. John Owusu, AGC's Senior Corporate Affairs Manager, told the Ghana News Agency (GNA) Business Desk on Wednesday that the decision to enter the platinum industry was part of a grand expansion programme to be unveiled soon by the Company later this year.

He said Ashanti had embarked on a number of programmes to maximise its activities and would take strategic steps to ensure that the company's operations derive maximum benefits. He said Ashanti was on a cost-cutting drive but found the platinum project in South Africa as a viable project that would bring profits to the company.

Platinum is a soft metallic chemical highly resistant to corrosion and electrochemical attack. It is used as a catalyst for acid-proof containers ignition fuses, jewellery and dental alloys among other things. It is also used in the automobile industry. Fuel cells use platinum to create electricity without pollution by combining hydrogen and oxygen into water.

Owusu said AGC would go into a leasing agreement for the concession after the exploration activity. AGC, Ghana's premier gold company established in 1897, producing over one million ounces of gold is listed on the New York, London and Ghana Stock Exchanges.

Ashanti currently operates other mines in Tanzania, Guinea, and Zimbabwe. The price of platinum hit a 23-dollar high of 690 dollars, up from $667,000 over supply concerns and expected increased commercial use. Russia is the world's leading producer of platinum followed by South Africa.