London-listed Ridge Mining has scaled up the production forecast at its Blue Ridge project, in South Africa, and said on Thursday that it expected an additional $10-million in revenue a year from higher prices of the platinum-group metal (PGM) ruthenium.

The company previously referred to forecast production at Blue Ridge in terms of 125 000 oz platinum, palladium, rhodium and gold (4E), ignoring the contribution of associated ruthenium and iridium to the economics of the mine.

This was owing to relatively low values of these metals, but higher prices of ruthenium and iridium have resulted in Ridge Mining scaling up its Blue Ridge production forecast to 150 000 oz/y on a 6E basis (including ruthenium and iridium) at Blue Ridge.

"Demand for ruthenium has been particularly strong in the electronics industry as its inclusion in the manufacture of hard disks results in greatly increased storage capacity," chairperson Oliver Baring said in a note to shareholders.

At ruthenium's current prices, it was expected to add more than $10-million in yearly revenue over what was estimated in the feasibility study.

The price of ruthenium stood at $750/oz on Thursday, but many producers expect the price of the silver-grey metal to hit the $1 000/oz mark. In 2003 the price of ruthenium was only $35/oz, but it had jumped to $620/oz in December 2006.

CEO Terence Wilkinson added that the development at the Blue Ridge project had started and that Ridge Mining remained on target to achieve first production in the second half of next year.

Meanwhile, Ridge Mining, which announced last year that it was looking into a listing in Johannesburg, said on Thursday that it would not seek a listing on the JSE.

"Last year I indicated that a listing of the group on the Johannesburg Stock Exchange was under consideration and while we have not ruled out that possibility entirely, such a listing is not presently under consideration," Baring said.

The company, which is developing two mines in South Africa, reported a loss of $1,2-million for the year, compared with a profit of $2,4-million a year earlier, as a result of financing the Sheba's Ridge project with the Industrial Development Corporation.

However, Wilkinson reported that the feasibility study at Sheba's Ridge was progressing as planned.

"Every indication is that this will prove to be a very profitable large scale nickel/platinum group-metal producer."

The prefeasibility study indicated that the Sheba's Ridge project was robust at a nickel price of $4,50/lb. This should be viewed in the context of the prevailing nickel price of more than $20/lb.