Anglo American set to expand nickel, iron ore, platinum

The UK-based company's head of exploration for Africa and the Asia Pacific region Ian Willis said it regarded iron ore in particular as "interesting".

"Most of the money we're spending on nickel exploration will go into either nickel laterites in Brazil or sulphide nickel around the world, mainly in Canada, Scandinavia and Australia," Willis told journalists at the annual Diggers & Dealers Conference in Kalgoorlie, Western Australia.

"It's clear we regard iron ore as an interesting part of the business ... and it's no secret that we want to expand."

He said Brazil was the company's main focus for iron ore but it also continued to conduct reconnaissance exploration for the bulk commodity "all over Australia".

As for platinum, he said the outlook was strong, given tight supply.

Environmental legislation would drive significantly increased use of platinum, he added, referring to its use in catalytic converters.

This contradicts reports on Monday that the platinum price had fallen to its lowest level in more than six months on disappointing car sales, which could cut demand for catalytic converters.

New platinum production comes on stream in coming days when Platinum Australia Ltd brings its 69.75 per cent held Smokey Hills project in South Africa on stream.

Swiss mining giant Xstrata plc kicked off efforts to put its foot on platinum supply on Wednesday with a STG5 billion ($A10.7 billion) takeover bid for London-headquartered platinum producer Lonmin plc.