Amandelbult Section Visit - 26 May 2004 - Anglo American Platinum
Amandelbult Section Visit - 26 May 2004 - Anglo American Platinum
Amandelbult Section Visit - 26 May 2004 - Anglo American Platinum
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<strong>Amandelbult</strong>
Investment Analysts and Fund<br />
Managers <strong>Visit</strong><br />
<strong>Amandelbult</strong> PlatP<br />
latinum Mine<br />
“We at <strong>Amandelbult</strong> will consistently<br />
improve on our superior performance and<br />
enhance our value driven business culture”.<br />
<strong>26</strong> MAY <strong>2004</strong>
<strong>Amandelbult</strong>’s Values<br />
• Safety<br />
• Our people<br />
• The environment<br />
• Stakeholder relationships<br />
• Innovation<br />
• Business success
Agenda<br />
• Location & Mine infrastructure layout<br />
• Safety and Environment<br />
• Resources and Reserves<br />
• Mining Method<br />
• Production<br />
• Operating Cost<br />
• Capital Programme<br />
• Human Resources<br />
• Key Business Issues
Location & Mine Infrastructure<br />
Layout
Location<br />
Legend<br />
Bushveld Complex<br />
<strong>Anglo</strong> <strong>Platinum</strong><br />
<strong>Anglo</strong> <strong>Platinum</strong> - Joint Venture<br />
Impala <strong>Platinum</strong> Mines<br />
Lonmin PLC<br />
Northam <strong>Platinum</strong> Limited<br />
POTGIETERSRUST<br />
PLATINUMS LIMITED<br />
MOKOPANE (POTGIETERSRUS)<br />
POLOKWANE (PIETERSBURG)<br />
%U<br />
%U<br />
ð<br />
Polokwane Smelter<br />
LEBOWA PLATINUM MINES<br />
UNKI PROJECT<br />
Namibia<br />
Botswana<br />
Republic<br />
of<br />
South Africa<br />
Zimbabwe<br />
Mozambique<br />
Southern Era<br />
Merensky<br />
UG2<br />
Platreef<br />
AMANDELBULT<br />
NORTHAM<br />
LIMPOPO<br />
PASCHASKRAAL JV<br />
TWICKENHAM<br />
MODIKWA<br />
%U<br />
BURGERSFORT<br />
BELA BELA (WARMBATHS)<br />
%U<br />
UNION<br />
BAFOKENG/RASIMONE<br />
STYLDRIFT JV<br />
NORTH-WEST<br />
DER BROCHEN<br />
BOOYSENDAL JV<br />
LYDENBURG<br />
%U<br />
RUSTENBURG<br />
GAUTENG<br />
%U<br />
RUSTENBURG<br />
PANDORA JV<br />
%U<br />
PRETORIA<br />
MPUMALANGA<br />
WITBANK<br />
%U<br />
±<br />
%U<br />
JOHANNESBURG<br />
0 10 20<br />
Kilometres
<strong>Amandelbult</strong> Surface Plan
Mining operations
SHE Strategy<br />
Continuous reduction of at risk behavior, sub<br />
standard conditions, health hazards and<br />
environmental incidents.
Safety and Environment<br />
<strong>Amandelbult</strong> 4 LIFE<br />
• 4 Pillars of Safety system<br />
• Planned inspections<br />
• PTO’s<br />
• Accident/Incident investigation<br />
• Group Meetings<br />
• Lead by example<br />
• Implement OTTO<br />
• Friendly and Practicable standards<br />
• Eliminate at risk behavior
De c<br />
Oct<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Total Injuries<br />
Feb'01<br />
Apr<br />
Jun'01<br />
Aug<br />
Oct<br />
De c<br />
Feb'02<br />
Apr<br />
June'02<br />
Aug<br />
Oct<br />
De c<br />
Feb'03<br />
Apr<br />
Aug<br />
June'03
Dec<br />
Oct<br />
Aug'03<br />
Lost Time Injury Frequency Rate<br />
12.00<br />
10.00<br />
8.00<br />
6.00<br />
4.00<br />
2.00<br />
0.00<br />
Feb'01<br />
Apr<br />
Jun<br />
Aug'01<br />
Oct<br />
Dec<br />
Feb'02<br />
Apr<br />
June<br />
Aug'02<br />
Oct<br />
Dec<br />
Feb'03<br />
June<br />
Apr
Total Number of Fatalities<br />
14<br />
12<br />
10<br />
Number<br />
8<br />
6<br />
4<br />
2<br />
0<br />
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003<br />
Years
Environment<br />
• EMS Status<br />
• ISO14001 Certification achieved in February <strong>2004</strong><br />
• Water Consumption and Discharge<br />
• Closed circuit water reticulation<br />
• Water balance implemented<br />
• Waste management<br />
• Effective system with permitted landfill site on mine<br />
• Dust<br />
• Dust fall out low<br />
• Public Participation<br />
• Bi-annual environmental committee meeting held<br />
• Social Issues<br />
• Transformation forum<br />
• Addicted to business program<br />
• Environmental awareness interventions at local schools
Opencast Mining Operations
Opencast Rehabilitation
Mineral Reserves and Resources<br />
Mineral Reserves<br />
Merensky UG2 UG2 Opencast<br />
Reserves Grade Reserves Grade Reserve Grade<br />
Mt g/t 4E Mt g/t 4E Mt g/t 4E<br />
Proved 22.9 6.42 82.1 4.61 1.4 6<br />
Probable 90 6.59 249.5 4.65<br />
Total 112.9 6.56 331.5 4.64 1.4 6<br />
Mineral Resources<br />
Merensky UG2<br />
Resources Grade Resources Grade<br />
Mt g/t 4E Mt g/t 4E<br />
Measured<br />
Indicated 20.8 7.81 <strong>26</strong>.4 5.03<br />
Inferred 92.3 7.84 233.5 4.75<br />
Total 113 7.83 259.9 4.78
Merensky Resources<br />
Resource Classification<br />
Measured<br />
Indicated<br />
Indicated (As per GC overwrite)<br />
Inferred
UG2 Resources<br />
Resource Classification<br />
Measured<br />
Indicated<br />
Inferred
Merensky reef facies
Merensky Reef Characterisitics
UG2 Reef Characteristics
Immediately Available Ore Reserves<br />
22<br />
21<br />
20<br />
19<br />
18<br />
17<br />
16<br />
1999 2000 2001 2002 2003<br />
Months 21.1 19 18 18 19.9
3 Shaft Seismic Survey<br />
Stable block<br />
Still some noise<br />
on surface<br />
Clean and stable<br />
block<br />
Complex zone<br />
Very clean and<br />
stable block<br />
Stable block
Pothole Reef Characteristics
Mining Method
Mining Method<br />
• West<br />
• Designed as conventional breast mining<br />
• Central<br />
• <strong>Section</strong> 2 conventional breast mining<br />
• <strong>Section</strong> 7 fully mechanized room and pillar<br />
• East<br />
• Designed as conventional breast mining
Concentrator Capacities<br />
• Merensky<br />
• Original design 100ktpm, upgraded over time to current capacity of<br />
320ktpm<br />
• UG2<br />
• Original design 100ktpm; 1 st upgrade to 210ktpm and future<br />
proposed upgrade to 285ktpm<br />
• Opencast (UG2)<br />
• Original Merensky plant converted to 25ktpm UG2 unit<br />
• New 30ktpm plant erected<br />
• Total O/C capacity 55ktpm
Mine Infrastructure Layout
F/W Winze<br />
Mine Infrastructure Layout<br />
Surface<br />
28 West Twin Raise Bore<br />
5 Level<br />
Reef<br />
Sub Incline<br />
Raise Boreholes<br />
6 Level
Breast Layout - Schematic<br />
BREAST LAYOUT<br />
• X/Cuts 200m apart<br />
• Raise on reef to upper level<br />
(200m)<br />
• Orepasses to X/Cut and Hlge<br />
Raise<br />
Boxfront<br />
Haulage<br />
Cross Cut<br />
Travelling Way
Fully Mechanized Layout
Fully Mechanized Layout<br />
Throw blast zone<br />
Throw blast zone<br />
ledge<br />
1.5m<br />
road<br />
Throw blast zone<br />
1.2m Roof bolts<br />
Reef
Production
Development<br />
Development Meters<br />
50,000<br />
45,000<br />
40,000<br />
35,000<br />
30,000<br />
Metres<br />
25,000<br />
20,000<br />
15,000<br />
10,000<br />
5,000<br />
0<br />
1999 2000 2001 2002 2003<br />
CAPITAL M 4470 2<strong>26</strong>9 1493 1607 1430<br />
Total W/C M 36955 37<strong>26</strong>8 44816 44055 47460<br />
TOTAL M 41425 39537 46309 45662 48890
%UG2 Production<br />
UG2 mined as % of total output<br />
100<br />
90<br />
80<br />
70<br />
60<br />
%<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
1999 2000 2001 2002 2003<br />
UG2 mined as % of total output 29 32 36 44 46
Tons Milled<br />
7,500<br />
7,000<br />
6,500<br />
Tons milled 000<br />
6,000<br />
5,500<br />
5,000<br />
4,500<br />
4,000<br />
1999 2000 2001 2002 2003<br />
Years
Grade 4E g/t<br />
10<br />
8<br />
g/t 4E<br />
6<br />
4<br />
2<br />
0<br />
1999 2000 2001 2002 2003<br />
Built Up Grade 5.86 5.56 5.68 5.86 5.76
Equivalent refined Pt oz<br />
700<br />
650<br />
600<br />
550<br />
500<br />
000 oz<br />
450<br />
400<br />
350<br />
300<br />
250<br />
200<br />
1999 2000 2001 2002 2003<br />
Years
4E Prill Splits<br />
Current Concentrator 4E Prill Splits<br />
Merensky<br />
UG2<br />
<strong>Platinum</strong> 62.09 58.44<br />
Palladium 29.66 29.06<br />
Rhodium 4.96 11.76<br />
Gold 3.27 0.74
Recovery (Concentrator)<br />
100.00%<br />
% Recovery 4E<br />
80.00%<br />
60.00%<br />
40.00%<br />
20.00%<br />
0.00%<br />
1999 2000 2001 2002 2003<br />
4E Recovery 82.88% 82.83% 85.01% 86.25% 83.72%
Operating Costs
Cash on-mine costs<br />
Rand/ ton milled<br />
500<br />
450<br />
400<br />
350<br />
300<br />
Rands<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
1999 2000 2001 2002 2003<br />
R/ton milled 152 167 184 212 242
Cash on-mine costs<br />
R/oz equiv. refined Pt<br />
6,000<br />
5,000<br />
4,000<br />
Rand's<br />
3,000<br />
2,000<br />
1,000<br />
0<br />
1999 2000 2001 2002 2003<br />
R/oz equiv.refined Pt 1,618 1,886 1,995 2,210 2,607
Profitability and Volume per Mine 2003<br />
55,0%<br />
50,0%<br />
AS<br />
50,4%<br />
45,0%<br />
40,0%<br />
Operating Margin %<br />
35,0%<br />
30,0%<br />
25,0%<br />
20,0%<br />
Group average 28,0%<br />
US<br />
20,4%<br />
LPM<br />
20,5%<br />
PPL<br />
28,6%<br />
RS<br />
29,4%<br />
15,0%<br />
10,0%<br />
5,0%<br />
0,0%<br />
RS UG2 Project<br />
4,0%<br />
Modikwa<br />
0,5%<br />
BRPM<br />
10,1%<br />
0 300 600 900 1 200 1 500 1 800 2 100 2 400<br />
E quivalent Pt oz (000's)
Unit Costs<br />
Cash on-mine cost per equiv. Pt oz refined<br />
• Planned increase 12% above 2003<br />
• Cost Optimization Target 9% above 2003
Production Initiatives<br />
• Grade Improvement<br />
• Recovery Improvement<br />
• Opencast Mining
Cost Initiatives<br />
• Labour – Numbers, efficiencies, overtime etc.<br />
• Stores – Steel balls and chemicals<br />
• Utilities – Electricity management.<br />
• Contractors – Rate increases.<br />
• Sundries – Telephones, printing etc.
Capital
Capital Expenditure<br />
1000<br />
900<br />
800<br />
700<br />
600<br />
R's 000 000<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
1999 2000 2001 2002 2003<br />
Years
Key current capital projects<br />
• 2# Capital development<br />
• Tailings dam extension
Key future capital projects<br />
• Possible plant expansion to process incremental UG2<br />
production<br />
• Additional ore pass system at 1 Shaft<br />
Ongoing Capex level +/- R400m pa<br />
• No3 Vertical Shaft
Human Resources
In Service Employees<br />
UMO<br />
1002<br />
Operators 8745<br />
Total<br />
9747<br />
Contractors <strong>26</strong>63<br />
Grand Total 12410
Territorial Analysis of Employees<br />
0.05%<br />
4%<br />
0.05%<br />
11.2%<br />
0.4%<br />
<strong>26</strong>%<br />
0.36%<br />
1.6%<br />
0.11%<br />
0.56%<br />
6%<br />
23.4%<br />
70 Km Raduis <strong>26</strong>.27%<br />
Eastern Cape 23.40%<br />
Lesotho 6.00%<br />
Limpopo 11.20%<br />
Swaziland 1.60%<br />
Free State 0.56%<br />
Mpumalangga 0.40%<br />
Gauteng 0.36%<br />
Kwa Zulu Natal 0.11%<br />
Botswana 0.05%<br />
N/Cape 0.05%<br />
Mozambique 4.00%
Accommodation<br />
Hostels<br />
Dishaba<br />
Mlanje<br />
Tumela<br />
Capacity<br />
1 989<br />
1782<br />
3250<br />
De-densifying<br />
1352<br />
1440<br />
2380<br />
Hostel Residents<br />
Rent Subsidy<br />
Housing Bonds subsidy<br />
5204<br />
4433<br />
197<br />
Dedensification of Hostels<br />
Displacements over 5 Years = ± 1500
Focus of SED Spending<br />
• Health<br />
• Education Infrastructure<br />
• Education Capacity Building<br />
• Basic Services<br />
• Job Creation
Employee Relations<br />
Operators bargaining Unit<br />
Representatives Full Time Regional<br />
NUM 54.1% 51 2 1<br />
BEMWU 15.1% 30<br />
Supervisory Bargaining Unit<br />
UASA 67.9% 23 2 1<br />
NUM 12.7%
Key Business Issues
Key Business Issues<br />
• Maintain Merensky volumes during move from<br />
1Shaft to 2 Shaft<br />
• Mining efficiencies<br />
• Cost optimisation<br />
• Charter compliance