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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

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