Xstrata PLC (XTA.LN) is expanding its platinum and ferrochrome output through $1.3 billion worth of projects, the company's chief executive for alloys said Tuesday.

The three main growth projects are a 600,000-metric-ton-a year pelletizing and sintering plant, the Eland platinum project and the second phase of project Lion to 360,000-tons-a-year of ferrochrome.

Eland should triple platinum output and reach full underground mining by 2014, alloys CEO Peet Nienaber said at an investor day presentation in London. Xstrata targets Eland platinum output of 313,000 troy ounces by 2016, he said.

Nienaber said stainless steel demand, which consumes ferrochrome, should grow an average of 6.6% a year to 2015, driven by China. For platinum, Nienaber said demand from the auto industry won't return to 2007 peak levels until 2013.

-By Devon Maylie, Dow Jones Newswires; +44 20 7842 9483; devon.maylie@dowjones.com
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