Entire Annual Report - Anglo American Platinum

Global markets for platinumANGLO American Platinum Corporation Limited (the Group) mines,processes, refines and markets platinum and other platinum group metals(PGMs) and base metals.The Group strives to enhance its international status and position as theworld’s leading primary producer of PGMs through" development of its human resources" introduction and implementation of the most advanced technology andsystems available to achieve maximum cost effectiveness" optimal exploitation of its mineral interests" maximum utilisation of its sophisticated global marketing network.Its management and operational efforts are dedicated to optimising the use ofits resources for the benefit of local and foreign stakeholders.Business Development and Operational Reviews together with CorporateReviews in respect of Finance and Human Resources are included in thisannual report to provide stakeholders with a wider understanding of theGroup’s affairs.

ContentsNATURE OF GROUP BUSINESS(inside front cover)2 VISION AND VALUES6 CHAIRMAN’S STATEMENT24 MARKET REVIEW46 BUSINESS DEVELOPMENT REVIEW52 REVIEW OF OPERATIONS:54 – Overview of Safety and Health 56 – Environmental Review60 – Breakthrough Initiatives 62 – Technology Division 66 – Glossary of Terms: Operations68 – Operations and End-Product Flow ChartReview of Operations – Mining:74 – OverviewBusiness Unit Reports:80 – Rustenburg Section 84 – Amandelbult Section 88 – Union Section92 – Potgietersrust Platinums (PPRust) 96 – Lebowa Platinum Mines (Leplats)100 – Bafokeng-Rasimone Platinum Mine (BRPM)Review of Operations – Process:104 – Waterval Smelter 106 – Rustenburg Base Metals Refiners (RBMR)108 – Precious Metals Refiners (PMR)110 CORPORATE:110 Finance Review112 – Salient Statistics 113 – Glossary of Terms: Finance 114 – Ten Year Review116 Human Resources Review124 SHARE TRANSACTIONS TOTALLY ELECTRONIC (STRATE)127 FINANCIAL INDEX*129 – Directors’ Report 136 – Statement of Corporate Governance 146 – Income Statements147 – Balance Sheets 149 – Cash Flow Statements150 – United States Dollar Equivalent Financial Statements 153 – Value Added Statement182 DIRECTORATE185 MANAGEMENT AND ADMINISTRATION188 NOTICE TO MEMBERS191 SHAREHOLDERS’ DIARYFORM OF PROXY*Detailed index on page 1271

Vision and ValuesOUR VISION" to increase our lead as the World’s number One Platinum Organisationand build world class relationships with all our stakeholdersOUR STRATEGY" to grow the market for platinum group metals" to expand into that growth" to optimise value in current operationsOUR VALUES" safety and health of all our people and safeguarding assets" trust and respect for all employees" care for our environment" responsibility towards the community" wealth creation for all stakeholders" honesty in the conduct of our business" development of our peopleIn order to achieve our goal, we are guided by the following principles:" to provide direction and leadership" to encourage employees to perform better at all times" to promote understanding through effective communication" to encourage personal growth" to empower all employees by providing the appropriate training and equipmentANGLO AMERICAN PLATINUM CORPORATION LIMITEDIncorporated in the Republic of South Africa(Date of incorporation: 13 July 1946) Registration number 1946/022452/06A member of the Anglo American plc group2

DirectorateC B Brayshaw" NON-EXECUTIVE DIRECTORAppointed a Director: 1996J W Campbell" NON-EXECUTIVE DIRECTORAppointed a Director: 2000L Boyd" CHAIRMANAppointed a Director: 1995B E Davison" CHIEF EXECUTIVEOFFICERAppointed a Director: 1988DirectorateJ A Dreyer" EXECUTIVE DIRECTOR: BUSINESSDEVELOPMENT AND PLANNINGAppointed a Director: 1998D T G E m m e t t" CHIEF OPERATING OFFICERAND EXECUTIVE DIRECTOR:COMMERCIALAppointed a Director: 1991E Ford" EXECUTIVE DIRECTOR:OPERATIONSAppointed a Director: 19994

B E Ngubane" EXECUTIVE DIRECTOR: HUMANRESOURCESAppointed a Director: 1998G R Pardoe" NON-EXECUTIVE DIRECTORAppointed a Director: 1997P F Retief" NON-EXECUTIVE DIRECTORRe-appointed a Director: 1997M W King" NON-EXECUTIVEDIRECTORAppointed a Director: 1979W A Nairn" NON-EXECUTIVEDIRECTORAppointed a Director: 2000A J Trahar" NON-EXECUTIVE DIRECTORAppointed a Director: 1999R H H van Kerckhoven" EXECUTIVE DIRECTOR: FINANCEAppointed a Director: 19945

Chairman’s Statement650600550500450400350300950800650500350200502 5002 0001 5001 000Average monthlymarket prices19961996Platinum US S/oz19971997199819981999Palladium US S/oz1999Rhodium US S/oz20002000Chairman’s StatementFinancial resultsThe Group achieved record financial results for the year, far exceedingits performance in any preceding year. Profit attributable to ordinaryshareholders amounted to R6,92 billion, which was R4,31 billion or165,6% higher than last year’s figure and translates into a little overUS$1 billion at the average exchange rate for the year.Gross sales revenue rose by R7,39 billion or 84,0% to R16,19 billion(1999: R8,80 billion), mainly because of higher US dollar metal pricesfor platinum group metals (PGM). The average price of US$544 perounce realised for platinum in 2000 was US$167 higher than in1999. The realised prices for palladium and rhodium were alsosignificantly higher than those achieved in 1999; palladium realisedUS$675 per ounce compared with US$358 and rhodium US$1 847per ounce compared with US$894. The higher metal prices increasedgross sales revenue by R6,01 billion, while the 13,5% weakening ofthe rand against the US dollar contributed R1,18 billion.Cost of sales increased by R1,34 billion or 25,0%. The increase waslargely due to the expansion of operations, to higher royaltypayments consequent upon larger profits, and to higher explorationcosts, a more extensive operations research and developmentprogramme and larger contributions to social investment projects.The balance of the increase was made up of higher operating costs,the non-recurrence of a metal lease settlement and a lower increasein the value of metal inventories.Operations were adversely affected by several factors. Extensiveflooding during February, March and April resulted in a loss of67 000 ounces of refined platinum production, and a further 55 000ounces were lost owing to the strike during September and October.Notwithstanding these events, tons milled increased by 7,5%.The average built-up head grade declined by 6,5% as a result ofthe processing of Bafokeng-Rasimone opencast ore, lower-gradedevelopment material processed during the commissioning of theAmandelbult UG2 and Middelpunt Hill plants, and an increase inthe proportion of UG2 ore milled.500019961997199819992000THE GROUP achieved record financial results for theyear, far exceeding its performance in any precedingyear. Profit attributable to ordinary shareholdersamounted to R6,92 billion, which was R4,31 billion or165,6% higher than last year’s figure.6

L Boyd" CHAIRMANThe above factors, combined with inflationary pressures and the cost inefficiencies normally experienced during the earlystages of bringing expansions to production, adversely affected unit costs. The cash operating cost per ton milledincreased by 8,0%, and the cash operating cost per platinum refined ounce by 25,5%. Despite the increase in tons milled,output of platinum refined ounces declined by 7,5% as a result of a reduction in built-up head grade and lower recoveriesin the Process Division. Other metal revenue exceeded the cash operating cost of platinum production by some R1 700 perplatinum refined ounce.Other net income rose by R537,5 million because of a higher gain on the translation of foreign operations and highergains achieved on the repatriation of dollar revenues.The Group’s share in the earnings of Northam Platinum Limited, whichcontributed to profit before taxation for the first time this year, amounted toR157,6 million.The increase in the tax charge was primarily attributable to higher taxableincome, to the write-back of deferred taxation in 1999 following the change inthe company tax rate from 35% to 30%, and to increases in the State’s share ofprofit and secondary tax on companies.Cash reserveschairman’sstatementCash generated by operating activities amounted to R7,95 billion comparedwith R2,97 billion in 1999. Net cash applied in respect of investing activities,primarily capital expenditure, amounted to R1,63 billion (1999: R1,30 billion).Net cash applied in financing activities and the payment of dividendsamounted to R2,41 billion (1999: R985,5 million). Cash and cash equivalentsat the end of 2000 amounted to R6,12 billion.7

Chairman’s Statement" (continued)54321012 00011 00010 0009 0008 0007 0006 0005 0004 0003 0002 0008765Average monthlymarket prices19961996Nickel S/lb199719981999Basket price perPt ounce-SAR/oz199719981999Rand/US dollarexchange rate20002000Chairman’s StatementCapital expenditureCapital expenditure for the year amounted to R1,92 billion (1999: R1,47 billion).Expenditure for expansion was R1,35 billion (1999: R1,00 billion), whilethat for maintaining operations was R569,3 million (1999: R472,6 million).The Bafokeng-Rasimone Platinum Mine accounted for R370,7 million of theexpansion expenditure for the year. The development of the undergroundoperations was delayed by the excessive flooding experienced in the firsthalf of 2000. However, the designed milling rate of 200 000 tons per monthwill be achieved by October 2001, and refined platinum production is expectedto exceed 190 000 ounces in 2001. The designed underground output of250 000 ounces per annum is expected to be achieved in 2002 as per theoriginal plan.Capital expenditure for Amandelbult’s UG2 and Lebowa’s Middelpunt Hillprojects amounted to R153,7 million and R83,1 million respectively.The projects were commissioned on time and within budget and areproducing at the combined planned rate of 107 000 ounces per annum.Expenditure of R397,3 million was incurred during the year on the AngloPlatinum Converting Process project, which is designed to significantlyreduce sulphur dioxide emissions from the Waterval Smelter complex inRustenburg. The total project is estimated to cost R1,45 billion in July 2000money terms and is scheduled for completion by 2004.DividendsThe Board declared a final cash dividend of 1 100 cents (1999: 425 cents)per ordinary share, which is an increase of 158,8% on the final dividend for1999 and, taking account of the interim dividend of 710 cents per share,brings the total dividends for the year to 1 810 cents per share (1999: 700 cents),an increase of 158,6%. The dividend cover of 1,7 has been maintained.The Group has accumulated large cash reserves and it is anticipated that thesereserves will continue to grow despite the extensive capital expenditureprogramme. Therefore, in addition to the interim dividend of 710 cents pershare and the final dividend of 1 100 cents per share, the Board declared aspecial dividend of 600 cents per share. The total distribution for the yearamounted to 2 410 cents per share.4The Board is satisfied that the capital remaining after the payment of both319961997199819992000the final and special dividends is sufficient to support the currentoperations and facilitate development of the business.CASH GENERATED by operating activities amounted toR7,95 billion compared with R2,97 billion in 1999.8

Chairman’s Statement" (continued)Chairman’s StatementSafetyDespite constant efforts by the Group to ensure the safety and health of allemployees and contractors, the Board deeply regrets to report that 23 fatalitiesoccurred at Group operations during the year compared with 13 fatalities inthe 1999 year. Most unfortunately, the improvement in safety statisticswhich had been demonstrated over the previous two years was not sustained.The “Zero Tolerance” campaign launched by Anglo Platinum in August 1999,with the objective of eliminating all unsafe acts from Group operations,remains the vehicle by means of which the Group will unremittingly seekto improve its overall safety performance. Each Business Unit is renewingits efforts to reinforce the in-house safety and health programmes.Furthermore, the Chief Executive Officer visits the site of any fatality tofamiliarise himself with the circumstances and the adherence to safetystandards and procedures.Notwithstanding the deterioration in safety performance, both Union andAmandelbult Sections recorded 3 million fatality-free shifts early in 2000,which constitutes a record for both Anglo Platinum and the industry.The platinum marketDemand for platinum in 2000 is estimated to have increased by 1,2% to arecord 5,665 million ounces, owing to firm off-take by all sectors except theinvestment sector. Total supplies are estimated at 5,321 million ounces, a9,3% increase on the previous year’s level which was due to substantiallyhigher shipments from Russia. These higher shipments were attributable tothe amendment of restrictive aspects of Russian legislation relating to PGMexports that had inhibited such exports from Russia in 1999. Though theeasing of supplies from Russia contributed to a smaller deficit than that for1999, the shortfall in supply was still significant.Despite the strong upward trend in the platinum price in 2000, overalldemand for the metal for jewellery fabrication continued to expand. InJapan, however, the increased price of platinum resulted in gold jewellerygaining market share in lightweight products, and fabrication demand forplatinum declined in Japan by almost 15%. On the other hand, fabricationof platinum jewellery continued to expand in China and is estimated tohave reached 1,1 million ounces in 2000, some 16% more than the previousyear’s figure. While consumer demand remained extremely strong in China,higher prices and strict tax enforcement by the authorities slowed its rate ofTHE “ZERO TOLERANCE” campaign remains the vehicle by meansof which the Group will unremittingly seek to improveits overall safety performance.10

C h a irman’s Statement" (continued)Chairman’s Statementexpansion in the latter part of the year. The platinum jewellery market alsocontinued to grow in the United States and Europe as a result of increasedawareness of the metal and the prevailing white metal trend in jewellery.Higher prices encouraged Japanese investors to sell substantial quantities ofplatinum purchased in previous years back onto the market. Sales from thissource exceeded investment demand. Sales of platinum coins fell sharplyduring the year to an estimated 45 000 ounces, half the amount sold in 1999.The use of platinum in autocatalysts recovered in 2000 after three years ofdecline. Higher loadings of platinum on catalysts fitted to diesel vehicles inEurope, and a 13% increase in sales of diesel vehicles in this region, werelargely responsible for the rise in offtake. In the other regions, improvedautomobile production and some switching from palladium technology intoplatinum were responsible for the increased demand.Industrial demand for platinum is expected to have increased by some 8%,with rising consumption in the electrical and glass sector offsetting loweruse in the chemical sector.The palladium marketIn contrast to the last two years, the automobile industry drew down itsstocks to alleviate the impact of escalating palladium prices in 2000. Owingto the sharp decline of 12% in purchases for autocatalysts and of 22% indental demand, partly offset by a moderate growth in electronics demand ofsome 5%, total demand is estimated to have fallen during the year by960 000 ounces or 10,3%.At 7,92 million ounces, palladium supplies during 2000 were also lowerthan in 1999, albeit by a marginal 2%. Total demand for the metal againexceeded total supplies, but the net effect of the sharp decline in demandrelative to supply was to reduce the supply deficit to 480 000 ounces for theyear compared with 1,30 million ounces in 1999.Platinum group metals pricesPLATINUMAs a result of robust consumer demand and uncertainty regarding theavailability of Russian metal, the platinum price rose sharply though erraticallyduring the year under review from a low of US$414 per ounce on 6 Januaryto a 13-year high of US$625 on 13 December. The average price per ouncerealised by Anglo Platinum during the year was US$544 (1999 : US$377).PLATINUM GROUP METAL markets are expected to be firm in themedium term, given their sound demand fundamentals.12

PALLADIUMStill more pronounced than in the case of platinum were the upward trend and volatility of the palladium price. Openingthe year at around US$440 per ounce, the palladium price surged to US$800 on 21 February in response to strong demandand a shortage of Russian metal. It then declined on rumours that Russian export quotas had been signed and reached alow point of US$553 on 11 April. After a period of consolidation at just below the US$600 level, the price rose stronglyagainst the background of firm demand, though with marked fluctuations due chiefly to conflicting reports as to theavailability of Russian supplies, and attained a new record level of US$972 on 27 December. It then breached theUS$1 000 level in January 2001 reaching a high of US$1 085 but has subsequently weakened as a result of the resumptionof Russian sales. The average price per ounce realised by Anglo Platinum during the year was US$675 (1999 : US$358).RHODIUMThe rhodium price was influenced by factors similar to those that affected the prices of platinum and palladium. A lack ofRussian metal coupled with firm demand resulted in a 6-year high of some US$1 400 per ounce being reached in January2000. In extremely tight conditions the price peaked at US$2 500 in February before declining sharply to below US$2 000by the end of the month as buying pressure dissipated. Renewed buying and a shortage of Russian metal then led to ageneral recovery in the price to US$2 600 on 6 August before it declined to US$1 650 in response to heavy Russian sales.Once Russian offers were withdrawn, the price rebounded strongly, reaching US$1 725by the end of October. Firm demand and a decline in Russian offers underpinned theprice for the rest of the year, by the end of which rhodium had consolidated at aroundthe US$2 000 level. The average price per ounce realised by Anglo Platinum duringthe year was US$1 847 (1999 : US$894).Market developmentThe growth and development of the platinum market are a cornerstone of AngloPlatinum’s strategy. Considerable funds are allocated to ongoing research anddevelopment to ensure that platinum’s position at the forefront of industrial andautomotive applications is consolidated and strengthened.Via the Platinum Guild International (PGI), large-scale market campaigns are necessaryto nurture platinum’s position in existing jewellery markets and to develop new ones.The success of PGI’s activities is apparent from the growth of platinum jewellerymarkets over the past ten years, particularly China and the United States of America.In concert with other major South African platinum producers, under the auspices ofthe International Platinum Association (IPA), the PGI launched a platinum jewellerypromotion campaign in India in 2000. The PGI are to be congratulated on theirprofessionalism and effectiveness in carrying out their mandate.Market outlookProvided the restrained Russian selling pattern and a sound global economic climatepersist, platinum group metal markets are expected to be firm in the medium term,given their sound demand fundamentals.Continuing promotion of platinum in the jewellery sector is expected to secureplatinum’s sound position, particularly in the bridal sector, which will help offsetdifficult conditions at the less expensive end of the market.13

Chairman’s Statement" (continued)Chairman’s StatementPlatinum use in the autocatalyst market is expected to continue to increasein the short to medium term. Ongoing growth in demand for dieselvehicles, coupled with the concerted effort by the automobile industry toreduce its reliance on palladium, is expected to more than compensate forany potential decline in vehicle sales as a result of economic weakness insome of the markets. Demand for platinum in industrial applications isexpected to continue to grow, driven by increasing offtake in the electrical,information technology and other industrial sectors.With gross autocatalyst demand approximating newly mined supplies, otherpalladium markets are entirely dependent on Russian sales from stock.Demand for palladium in autocatalysts is likely to continue to grow in theshort term, but a degree of substitution is expected to result in a decline inpalladium offtake in the electronics and dental sectors. Ongoing growth isexpected in rhodium demand in the autocatalyst sector.Business strategyAnglo Platinum’s goal is to create value for stakeholders by developing themarket for platinum group metals and by expanding into the growthopportunities thus created, while continually seeking to improve its positionon the industry cost curve.EXPANSION PROGRAMMEIn the Chairman’s Statement for 1999, shareholders were informed that,owing to the projected growth of demand for platinum and the prospect ofdiminishing supplies of Russian metal, the Group was expanding itsoperations with a view to achieving a productive capacity of 2,65 millionounces by 2003. The increase in production would flow in part frompreviously announced projects (the Bafokeng-Rasimone Platinum Mine, theMiddelpunt UG2 project at Atok, and the expansion of PPRust’s capacity).The balance would come from other expansions at existing mines and fromnew projects, including the then recently announced Maandagshoek project.In May 2000, the Group announced that its ongoing assessment of supplyand demand fundamentals for platinum indicated more favourablemedium-term prospects for jewellery, industrial and autocatalyst demandthan had been previously forecast; and that, accordingly, the Board haddecided to increase Group production from the 1999 level of some 2 millionounces of platinum to 3,5 million ounces by the end of 2006. The additionalmetal would be sourced from a number of new mines as well as from theexpansion of existing mines in South Africa. Anglo Platinum had alreadyTHE BOARD had decided to increase Group production from the1999 level of some 2 million ounces of platinum to3,5 million ounces by the end of 2006.14

Chairman’s Statement" (continued)Chairman’s Statementinformed shareholders that a new mine, Maandagshoek, producing 162 000ounces and costing R1,35 billion in 2000 money terms, would come intooperation by 2002. Further mines and expansions would be announced asand when they were approved by the Board. The capital expenditurerequired for the expansion of mining and processing capacity was estimatedat R12,60 billion in 2000 money terms, which would be funded fromoperating cash flows and borrowings. It was further stated that theexpansion programme would result in the creation of some 13 000 new jobsand that the considerable investment entailed, together with the significantforeign exchange earnings from the sale of the additional production, wouldfavourably impact on the South African economy to the benefit of allstakeholders.Regarding the Maandagshoek project, mining authorisation for the SouthShaft area was received on 6 November 2000 and the first blast was carriedout on 9 November 2000. Authorisation for the North Shaft was granted inFebruary 2001.Turning to subsequent announcements, which are also referred to in theaccompanying Directors’ Report, shareholders were informed on 17 August2000 of a joint venture between Aquarius Platinum (Aquarius), KroondalPlatinum Mines (KPM) and Rustenburg Platinum Mines (Rustenburg) forthe expansion of KPM’s capacity from some 100 000 ounces to some300 000 ounces of platinum per annum, in which KPM and Rustenburgwere to share on a 50:50 basis. The joint venture has since lapsed, owing tothe fact that the Boards of Aquarius and KPM did not approve thedevelopment programme for the joint venture, which approval was one ofthe suspensive conditions of the initial agreement between the parties.The Anglo Platinum Group will make up elsewhere the production lost to itas a result of the lapse of the joint venture.During the latter half of the year, the Group announced expansion projectsto increase the output of Rustenburg and Union Sections by 395 000 and94 000 ounces of platinum per annum at capital costs of, respectively,R1,310 billion and R423,0 million in 2000 money terms. Both projects arescheduled for completion in 2002.Excluding the lapsed Kroondal joint venture, the mining projectsannounced thus far will, on completion, augment the Group’s production byapproximately 1 million ounces of platinum per annum.In addition, it was announced on 8 February 2001 that a new smeltercomplex is to be constructed at Pietersburg. The complex, which is scheduledTHE EFFECTIVE management of Anglo Platinum’s human resourcescontinues to play a pivotal role in the realisation of theGroup’s goals and business strategy.16

for completion in 2002, is estimated to cost R1,31 billion in July 2001 money terms and will have a capacity of 650 000 tonsof concentrate per annum. Granulated furnace matte produced at the complex will be transported to Rustenburg for refining.Various other projects are under consideration and further announcements will be made in due course.EXPLORATIONFurther progress was made during the year with the Group’s international exploration programme. Canada is still themain focus of attention, particularly the province of Ontario. In addition to the River Valley joint venture, which is inprogress, several other Canadian properties were reviewed and discussions are taking place with Canadian junior miningcompanies regarding participation in prospective projects. A number of opportunities in other areas of the world,including Russia, are also under consideration.Platinum group metals have been found on three main areas of mineralisation in the River Valley Intrusion, Ontario. Themetals are associated with disseminated copper-nickel sulphides hosted by an extensive breccia unit that lies close to theintrusive contact.Surface mapping and sampling last year delineated mineralisation over 900 metres of strike at Dana Lake and over 800metres at Lismer’s Ridge. Drilling subsequently focused on Dana Lake, where 37 holes were completed and it was foundthat low grade but fairly wide mineralisation is present. Work will continue on allthree areas in 2001. The project cost for 2000 was Can $1,5 million and the budget for2001 is Can $2,0 million.The objective of the joint venture with Eurasia Limited was an assessment of thepotential for commercial application of alternative technologies to define and exploitlarge-scale tailings and alluvial platinum resources in the Urals. During the year 2000,Anglo Platinum funded reconnaissance work and the establishment of a database ofavailable historic production and exploration information. Based on this work thejoint venture established exploration models for application in the Urals. The objectiveof work in 2001 will be to firm up the extent of the potential resources identified andthe definition of resources to support a long-term sustainable operation. The cost forthe Eurasia project for 2000 was US$ 0,25 million.Human resourcesThe effective management of Anglo Platinum’s human resources continues to play apivotal role in the realisation of the Group’s goals and business strategy.Significant progress was achieved during 2000 in the implementation of the Group’speople-centred business improvement initiatives.A more mature relationship between the Group and organised labour has beenestablished and has resulted in a sharp decline in unprocedural industrial action. It isthe aim of Anglo Platinum to further strengthen this relationship through theimplementation of a new Employee Relations Policy which is being jointly developedwith the unions and associations. Regrettably, however, the Group experienced aprotected wage strike organised by the NUM during the latter part of 2000. Secondly itis pleasing to report that the Group’s Training and Development Centres are now fullyaligned with the new legislative requirements, as is evidenced by the fact that therequisite rebates were received from the Department of Labour in respect of the skillslevy paid by the Group during the year. It is also noteworthy that the Group’s capacity17

Chairman’s Statement" (continued)Chairman’s Statementfor skills development has been considerably enhanced through the acquisitionof the James Park Engineering Skills Training Centre in June 2000. TheCentre will play a pivotal role in skills development and hence in theGroup’s ability to achieve its business strategy, as reflected by its expansionprogramme, thereby realising its goal of creating value for stakeholders.A specific area of human resources development which has received, andwill continue to receive, attention is that of Employment Equity. Variousprogrammes, ranging from adult basic education to targeted skills developmentand mentoring, are aimed at significantly lifting the overall skills base ofemployees who have been disadvantaged through historical factors.Anglo Platinum continues to play a significant role in the improvement ofthe quality of life in the communities surrounding its operations throughvarious socio-economic development initiatives. These encompass educational,health, infrastructural and economic development (job creation) programmes.Mineral rightsDuring December 2000 Anglo Platinum entered into an agreement with theMinister of Minerals and Energy in terms of which Anglo Platinum wasgranted mineral leases (for 25 years, renewable for a further 25 years) overthose farms the Group intends mining on the Eastern Limb of the BushveldComplex. At the same time Anglo Platinum’s mineral rights to certain otherfarms on the Eastern Limb, which were also held in terms of the JointVenture Agreement with the former Lebowa State and which AngloPlatinum does not presently intend to mine, were relinquished.The agreement secures to Anglo Platinum on the Eastern Limb the mineralresources required for its production and expansion programmes for theforeseeable future.Black economic empowermentAnglo Platinum’s previously announced intention to promote theparticipation of Black empowerment interests in the platinum industry tooktangible form towards the close of August 2000 when MvelaphandaPlatinum (Pty) Ltd (Mvela) acquired from the Group a 17,5% interest inNortham Platinum Limited (Northam). This empowerment transaction wasfacilitated by Anglo American, which sold to Anglo Platinum the 13,3%interest in Northam that it had acquired as part of the unbundling of GoldFields of South Africa. As a result of this transaction and the sale by theANGLO PLATINUM remains committed to supporting andencouraging meaningful Black Economic Empowerment.18

Rembrandt Group to Mvela of a further approximately 5% of Northam, both Anglo Platinum and Mvela each hold some22,5% of Northam’s equity.As regards the Maandagshoek project, negotiations are continuing with African Rainbow Minerals (ARM) wherebyARM, as the leader of an empowerment consortium, could become a 50% joint venture partner in the project.Anglo Platinum remains committed to supporting and encouraging meaningful Black Economic Empowerment.ProspectsProvided the restrained Russian selling pattern and a sound global economic climate persist, platinum group metalmarkets are expected to remain firm.Should platinum group metals prices and the Rand/US dollar exchange rate remain at current levels, it is expected thatearnings for 2001 will show a significant improvement on those achieved during 2000.Directors, management and staffSeveral changes occurred to the composition of the Board of Directors during the 2000 year. In May 2000 Mr Peter Kinverwas appointed alternate to Mr Eric Ford and in August 2000 Mr Richard Pilkington wasappointed alternate to Mr Dorian Emmett in place of Mr Peter Charlesworth.With effect from the beginning of September 2000 Messrs Harry Calver and Brian St Johnresigned from the Board. At the same time Dr James Campbell and Mr Bill Nairn wereappointed to the Board as Non-Executive Directors to fill the vacancies created by theaforementioned resignations, and Messrs Harry Calver and Vincent Uren were appointedalternates to Messrs Bill Nairn and Mike King respectively.Since the end of the 2000 year Messrs Basil Fleetwood and Mike Smith, due to their retirement,were withdrawn as alternates to Messrs John Dreyer and Roeland van Kerckhoven.I extend a warm welcome to the new Directors and Alternate Directors on the AngloPlatinum Board and I have every confidence that their combined experience and expertisewill be of considerable benefit to the Group.I should like to pay tribute to the roles played by Messrs Brian St John, Basil Fleetwoodand Mike Smith during their years of association and service with the Anglo PlatinumGroup.Brian St John first joined the Board as alternate to Mike King in August 1989 and becamea full member of the Board in November 1996 and was appointed a member of the GroupAudit Committee. Brian played a key role during the restructuring of the Group in 1997when Anglo Platinum emerged as the sole remaining listed company of the Group. I wishto place on record the Board’s appreciation for his hard work and devotion to duty in theinterests of the Group. From September 2000, Brian took up an appointment at AngloAmerican’s coal subsidiary in Brisbane, Australia and we wish him well in his newresponsibilities.Basil Fleetwood, who retired from the service of Anglo Platinum at the end of December2000, joined the Johnnies Group in 1990 and rose to the position of Consulting Engineerin that Group in 1994. Upon the unbundling of Johnnies in 1995 he joined Anglo Platinumand was appointed Divisional Director: Mines until 1997, when he assumed responsibility19

Chairman’s Statement" (continued)Chairman’s Statementas Divisional Director for Project Breakthrough. He served effectively in thiscapacity until his retirement. Mike Smith was transferred from AngloAmerican’s head office to Anglo Platinum in 1997, at which time he wasappointed an Alternate Director and Divisional Director: Mines responsiblefor PPRust and Lebowa Platinum Mines. On behalf of the Board I wish toextend to both of them our sincere appreciation for their hard work andcontribution to the prosperity of the Group. We wish them a long andhappy retirement.The appointment of Barry Davison, the Chief Executive Officer of AngloPlatinum, to the Executive Committee of Anglo American plc in December2000 and his increasing involvement with the Chamber of Mines, hasnecessitated the appointment of a Chief Operating Officer for Anglo Platinum.Dorian Emmett, the Executive Director: Commercial, has been appointedChief Operating Officer with effect from 1 March 2001. Dorian will alsocontinue to perform the function of Executive Director: Commercial until anew incumbent is appointed.In addition, the magnitude of the expansions being undertaken by theGroup warrants the appointment of an Executive Director: Projects whoseresponsibility will be to plan and implement all aspects of these expansions.In terms of the revised structure at executive level, the Executive Directors:Operations, Projects and Human Resources will report to the Chief OperatingOfficer who in turn will report to Barry Davison, the Chief Executive Officer.The appointment of an Executive Director: Projects and an Executive Director:Commercial to replace Dorian, will be announced when these appointmentshave been finalised.I will be retiring as a Director of Anglo American plc in the near future.Accordingly, it is my intention to stand down as Chairman of Anglo Platinumat the conclusion of the forthcoming Annual General Meeting, at whichtime it is proposed that the Board will appoint Barry Davison as ExecutiveChairman in my place. I will, however, retain my seat on the AngloPlatinum Board as a Non-Executive Director.In conclusion, I have pleasure in extending to Barry and his team our thanksfor their significant contribution to the Group’s results for the 2000 year.L BoydCHAIRMANJohannesburg9 March 200120

ExecutiveCommitteeExecutive CommitteeB E Davison" CHIEF EXECUTIVE OFFICERAppointed a Director: 1988J A Dreyer" EXECUTIVE DIRECTOR: BUSINESSDEVELOPMENT AND PLANNINGAppointed a Director: 1998D T G Emmett" CHIEF OPERATING OFFICERAND EXECUTIVE DIRECTOR:COMMERCIALAppointed a Director: 1991CODE OF ETHICS: The Group’s managers and employees arecommitted to maintaining the highest ethical standards in dealingwith stakeholders in the belief that business should be conductedhonestly, fairly and legally. This commitment is embodied in aformal code of ethics.22

E Ford" EXECUTIVE DIRECTOR: OPERATIONSAppointed a Director: 1999B E Ngubane" EXECUTIVE DIRECTOR: HUMANRESOURCESAppointed a Director: 1998R H H van Kerckhoven" EXECUTIVE DIRECTOR: FINANCEAppointed a Director: 199423

24Platinum Market Review

CREATING growth in anexpanding market25

Platinum Market Review1008060402005 7005 4005 1004 8004 5004 200Platinum productionin perspectiveGlobal2000SouthAfricaRussiaOther19961997%1998South Africa2000AngloPlatinumOtherPlatinum demand/supplyDemandSupply000’s/oz19992000Anglo Platinum OverviewAnglo Platinum is the world’s leading producer of platinumand accounts for more than half of South Africa’s 72%contribution to world supplies. The Group is currentlyengaged in an expansion programme to increase its annualproduction of platinum from the 1999 level of some 2 millionounces to 3,5 million ounces by 2006. Included in the Groupare: Rustenburg Platinum Mines Limited, PotgietersrustPlatinums Limited, Lebowa Platinum Mines Limited,Rustenburg Base Metals Refiners (Proprietary) Limited andPrecious Metals Refiners (Proprietary) Limited.The Group’s adherence to the ISO 9000 standardspromulgated by the International Standards Organisationensures the purity of refined metals output that complieswith the customer’s specifications and preferences. AngloPlatinum’s customers include the world’s leading preciousmetal fabricators - Johnson Matthey plc (JM), EngelhardCorporation (EC), Tanaka Kikinzoku Kogyo KK (TKK),dmc 2 Degussa Metals Catalysts Cerdec AG and two of theworld’s leading automobile companies. The close connectionforged with customers has afforded the Group a closerrelationship with the markets. Furthermore, the agencyANGLO PLATINUM is firmly committed to the developmentof its markets and in joint ventures with JM researchesand promotes new products for platinum.26

elationship with JM provides intelligence and market research that areessential to the formulation of successful marketing and operational strategies.Anglo Platinum is firmly committed to the development of its markets and injoint ventures with JM researches and promotes new products for platinum.PLATINUM INDUSTRY ORGANISATIONSWhile the industrial markets for platinum are driven by technologicaldevelopments, the jewellery and investment markets require constant promotionand development to enhance consumer awareness and thereby to expandexisting markets and develop new opportunities. To this end, Anglo Platinumsupported the formation of the Platinum Guild International (PGI) in 1975 andremains the major provider of funding for the organisation. After the success ofPGI’s Tokyo office, further operations were established in Italy and Germany,and subsequently in the United States and China. Exceptional growth in salesof platinum jewellery has occurred in the United States and China in the lastfew years.Demand in the USA has expanded fifteen-fold over the past decade. The Chinesemarket has registered spectacular gains since the mid-1990’s to become thesecond largest market for platinum jewellery after Japan. In September 2000,the PGI successfully launched a marketing programme in two major cities in India.The programme will be extended to other parts of that country during 2001.PGIJewelleryInvestmentIPAWFCCEstablished in 1975 in Japan.Focuses on platinum jewellery marketdevelopment. Operates in all key markets.Assisting new IPA project in India.Established in 1986. Promotes awarenessof platinum as an investment medium aswell as platinum investment products.Founded in December 1987. Provides acommunication forum for producers,precious metal fabricators and refiners.Focuses on market development activities,including jewellery and investment.Formed in September 1991. Dedicated topromoting the benefits and encouraging thecommercialisation of fuel cells. Membershipincludes platinum producers, preciousmetal fabricators, and power generationcompanies.Further to its endeavours to promote the uses and advantages of platinum,Anglo Platinum is actively involved in other industry organisations.The Group is closely involved with the International PlatinumAssociation (IPA), which provides a communication forumfor platinum producers and precious metal fabricatorsand facilitates market development. Anglo Platinum isalso a member of the World Fuel Cell Council(WFCC), a body dedicated to the commercialisation offuel cell technology.27

Platinum Market Review" (continued)MARKET SUPPLY AND DEMANDMarket Supply/DemandPlatinum enjoys a higher status than any other metal onaccount of its beauty, rarity and unique physical andchemical properties. Extreme resistance to corrosion,unparalleled catalytic properties and high fusibility ensureits role in many varied industrial uses, while its lustre,colour and strength attract an increasing following in thejewellery sector.Demand for newly mined platinum in 2000 is estimated tohave increased by 1,2% to a record 5,665 million ounces onfirm off-take in all sectors except the investment sector.Total supplies are estimated at 5,321 million ounces, a 9,3%increase over the 1999 figure owing to substantially highershipments from Russia which more than made up for thedecline in South African production due to flooding.Legislation that inhibited exports from Russia in 1999 wasamended during 2000, thus easing the export of moreRussian metal and resulting in a smaller, yet stillsignificant, deficit in overall supplies compared withdemand.DEMAND FOR newly mined platinum in 2000 is estimated to haveincreased by 1,2% to a record 5,665 million ounces.28

Platinum supply 2000South Africa 72%Russia 21%North America 5%Others 2%Platinum demand by application 2000Jewellery 51%Autocatalyst 23%Industrial 26%Platinum demand by region 2000Japan 26%North America 21%Western Europe 19%Rest of western world 34%29

Platinum Market Review" (continued)AUTOCATALYSTAwareness of the harmful effects of airborne pollutantsemerged in the 1950’s, when severe smog in large citiessuch as London was found to adversely affect humanhealth. Although the operation of motor vehicles generatedmore air pollution than any other single human activity,legislation covering their emissions was only promulgatedin the late 1960’s. The controls on auto emissions were firstapplied in the United States in 1968, and were relativelyeasily achieved through minor technical modifications tovehicles and improved fuel consumption. The 1970 CleanAir Act called for more severe standards on carbonmonoxide (CO) and hydrocarbons (HC) that could not beAutocatalystmet from engine modifications alone, and from 1975oxidation catalysts were fitted to new vehicles in theUnited States. The oxidation catalysts typically containedeither platinum or palladium or both. Tighter emissionstandards were phased in from 1981, targeting oxides ofnitrogen (NOx) as well as CO and HC emissions. In orderto comply with the new legislation it became necessary tofit vehicles with three-way catalysts, so named becausethey convert all three pollutants. At a specific air:fuel ratiothe three-way catalyst frees the oxygen from the NOx, anduses it to oxidise the CO and HC, the resulting emissionsbeing nitrogen, carbon dioxide and water. Rhodium wasadded to the catalyst to promote the reduction of NOx.From 1983, all new vehicles in the United States werefitted with three-way catalysts.THE LAST DECADE has witnessed the widespread enactmentof emissions legislation with a concomitant three-fold increasein PGMs over the period.30

Heavy photochemical smog in Tokyo, as in Los Angeles, prompted Japan to relatively early adoption of emission limitsfor vehicles, with legislation in place from 1975. Voluntary standards were introduced in part of Europe but the EuropeanCommunity and the rest of the world, stalled legislation for motor vehicles and by 1990 less than 50% of new vehiclesglobally, were fitted with catalysts. The last decade, however, has witnessed the widespread enactment of emissionslegislation with a concomitant increase in the use of platinum group metals (PGM) in autocatalysts, which has expandedmore than three-fold over the period. The actual and relative amounts of the various PGMs in autocatalysts are influencedby emission legislation standards, engine and catalyst design and fuel type.The use of platinum in autocatalysts recovered in 2000 after three years of decline. Higher loadings of platinum oncatalysts fitted to diesel vehicles in Europe and an increase in sales of diesel vehicles were largely responsible for the rise.Higher automobile production and some switching from palladium technology into platinum also contributed toimproved offtake.Sales of light vehicles in the United States rose by 2,7% in 2000 to 17,4 millionunits. Light trucks made up 48% of the sales, as in 1999. The domestic autoPlatinum and palladium usagein autocatalysts1990 = 100manufacturers lost some market share to imported vehicles, prompting2 500announcements of plant shutdowns and layoffs in 2001. Analysts are predictingthat sales will weaken in 2001 but will remain above the 16 million level.2 0001 5001 000However, fears exist in the industry that the steep declines in the last two500months of the year will continue into 2001, and that even the interest rate cutsannounced early in January will not be sufficient to offset other immediate019901991199219931994199519961997199819992000problems faced by the industry. Sales for January and February this year,despite showing a slight decline compared with last year’s figure, are far betterPalladiumPlatinumthan predicted.31

Platinum Market Review" (continued)The Environmental Protection Agency (EPA) has promulgatedlegislation to reduce sulphur in fuels. The legislation callsfor a reduction of sulphur in diesel from the present levelof 500 parts per million to 15 parts per million by 2006.Tier 2 emissions legislation set last year for gasolinerequires levels of no more than 30 parts per million ofsulphur by 2004. These limits were imposed after heavylobbying by the automobile manufacturers, who believedthat without such cuts they would be unable to achieveincreasingly severe emission reductions by catalysts andengine modifications alone.Sales of light vehicles in Europe fell by 2,2% in 2000compared with the previous year’s figure. The fall wasAutocatalystlargely due to weakness in Germany, Europe’s largestautomobile market. Diesel vehicles continue to gain marketshare in Europe and accounted for 32% of all new car sales,up from 28% in 1999. Higher relative prices for gasoline inEurope are the major reason for the higher sales of dieselvehicles, which are more fuel efficient, and the dramaticincrease in oil prices during 2000 further accelerated thistrend. Demand for diesel vehicles was significantly higherthan expected and exceeded current diesel engine productioncapacity. Many European automobile manufacturers areincreasing diesel engine production capacity in advance ofan expected further surge in demand for diesel vehiclesthis year.THE USE OF PLATINUM in autocatalysts recovered in 2000after three years of decline. Higher loadings of platinum oncatalysts fitted to diesel vehicles in Europe and an increase insales of diesel vehicles were largely responsible for the rise.32

Fuel cell stackDomestic sales of motor vehicles in Japan rose by 3% to 4,26 million units in 2000. Signs of an improvement in theeconomy helped to boost sales and it is hoped that the growth of demand evident in the last three months of 2000 willcontinue in 2001.More stringent legislation covering vehicle emissions came into effect in Japan from October 2000. These limits currentlyapply to all domestically produced models and will apply to imported vehicles from 2002.Net demand for platinum for autocatalyst fabrication in the rest of the world is estimated to have increased in 2000 by14% to 285 000 ounces. The increase emanated largely from Korea, Brazil and Argentina.In the past, PGM demand for autocatalysts from South East Asia was largely for vehicles for export. A tightening ofemissions legislation in Korea, coupled with an increase in production for both domestic and export markets, increasedthat country’s platinum requirements last year. In January 2000, Korean LEV standards were implemented and will bephased in over the period to 2003.In India, emissions standards equivalent to Euro I have been applied nation-wide to new cars. Since April 2000, carsregistered in Delhi have had to comply with more stringent emissions levels, namely Bharat Stage II. In August 2000these standards were applied in eight more cities, and the rest of the country is expected to comply soon.Emissions legislation equivalent to Euro I has been in place in China from2000, and a tightening of the legislation is expected from 2005. Although thepresent vehicle market in China is relatively small at around 625 000 units perannum, demand is expected to grow rapidly in tandem with economic growth.In South America, strong vehicle production in Brazil and Argentinais expected to have resulted in an increase in platinumdemand from these two countries in 2000, which willoffset a decline in estimated demand from Mexico.Production of vehicles in Mexico grew by 27% in 2000on account of a strong increase in sales in both thedomestic and export markets. However, more than75% of vehicles produced in Mexico are destinedfor North America, and are fitted with palladiumrichcatalysts to meet US LEV legislation. Themove towards palladium technology was at theexpense of platinum, with a consequentdecrease in offtake of the latter.33

Platinum Market Review" (continued)INVESTMENTNet demand for platinum investment products is estimatedto have been negative in 2000. Higher prices for platinumin Yen terms encouraged some dishoarding of large bars inJapan. Quantities of large investment products werepurchased at a time when the Yen price for platinumwas under ¥2000 per gram and with platinum tradingat this price during the secondhalf of the year, many investorssold metal back onto themarket. Sales of platinum coinswaned in 2000 owing to higherprices. Dishoarding of coins alsoInvestmentcontributed to a decline in netdemand. Interest in the USPlatinum Eagle diminished in2000 after several years ofpopularity with US investors.DESPITE THE STRONG upward trend in the platinum priceduring the year, overall demand for the metal forjewellery fabrication remained firm.34

PLATINUM JEWELLERYDespite the strong upward trend in the platinum price during the year,overall demand for the metal for jewellery fabrication remained firm.2 0001 6001 200800400Growth of platinumjewellery marketsoutside Japan000’s/ozPlatinum JewelleryJapanJapanese demand for platinum in jewellery fabrication, however,declined in 2000 by an estimated 15% to 1,125 million ounces, althoughdemand at the retail level remained firm, as shown by the fact that thenumber of platinum jewellery pieces sold declined by only 4% byvolume and by 2% in value. Higher metal prices resulted inmanufacturers destocking and moving some lower price point piecesinto other metals. In addition, some metal for fabrication was sourcedfrom recycled items. The weaker economic situation in Japan,exacerbated by higher platinum prices, resulted in platinum losingsome ground to gold at the lower end of the market. Platinum’s positionat the higher end of the market remains firm, accounting for over 90% ofengagement ring and over 80% of wedding ring purchases.USADemand for platinum for jewellery fabrication in the USA rose duringthe year by an estimated 15% to 380 000 ounces. This growth has occurredlargely in the bridal and gem-set market, which is not greatly influencedby the price differential between platinum and gold. The phenomenalgrowth in platinum absorption in the bridal market is aresult of focused marketing support by PGI (USA)Jewellery and the jewellery trade, resulting in0199519961997199819992000Rest of worldEuropeNorth AmericaChina35

Platinum Market Review" (continued)platinum bridal jewellery becoming a firmly establishedoption in the large US bridal market. According to anindependent survey conducted in the US, platinum’s shareof the first-time bridal market has increased from less than1% in 1992 to 40% in 2000.EuropePlatinum JewelleryDemand for platinum from European jewellery manufacturersin 2000 is estimated to have increased by some 8% to200 000 ounces. The four major platinum jewellery fabricatingcountries in Europe are Italy, Germany, the United Kingdomand Switzerland. Italian jewellery fabricators manufacturemost of their platinum jewellery for export and Germany isalso an important exporter. Domestic demand in bothcountries remains firm on the back of successful marketsupport activities by the PGI, especially in the bridalmarket, but demand was affected towards the end of theyear by higher prices. In the UK, sales continued to expandin 2000, again in the bridal sector, with ongoing supportfrom Johnson Matthey, jewellery manufacturers and retailers.Hallmark statistics indicated a 29% increase during 2000 inthe number of platinum jewellery pieces marked, the tenthconsecutive year of increase. In Switzerland, an increase indemand for platinum watches, especially from South EastAsian countries and the USA, resulted in a 43% increase inproduction in 2000.ChinaDemand for platinum jewellery in China during 2000is expected to exceed 1,1 million ounces, which isapproximately 16% higher than the previous year’s figure.ANGLO PLATINUM continues to support the localplatinum jewellery industry by means of competitions,workshops, training and co-operative advertising.36

Platinum jewellery is firmly established in China, occupying a significant proportion of counter space in most jewellerystores in medium and large Chinese cities. Consumer demand for platinum jewellery remained firm in 2000, during whichperiod platinum maintained its position as the preferred white metal. However, volatile platinum prices caused sporadicsupply shortages. Tax at the manufacturer level also affected production. The jewellery trade is lobbying authorities fortaxation of platinum jewellery to be brought into line with the lower rates levied on gold.IndiaPGI successfully launched an Indian marketing campaign for platinum jewellery in September 2000. At present thecampaign involves two jewellery manufacturers and twenty retailers based in Delhi and Mumbai. The campaign will beextended to other cities this year. India already possesses a strong jewellery culture, about 650 tons of gold being consumedannually, and even a small share of this market would be significant in terms of overall platinum jewellery demand.South AfricaAnglo Platinum continues to support the local platinum jewellery industry by means of competitions,workshops, training and co-operative advertising. A glittering event to award the winners of the PlatAfricaJewellery Competition was staged at the Sandton Sun and was attended by the Minister of Mineralsand Energy, other government members and captains of industry.Once again the competition attracted numerous beautiful entries, all expressing the “AfricanRenaissance” theme.To promote awareness of South African talent overseas, the PlatAfrica 2000 Collection waslaunched at the South African Embassy in Tokyo, Japan, and then went on exhibition in 47outlets of the prestigious Takashimaya Department Store throughout Japan. Several pieceswere sold to Japanese buyers.Successful training workshops on platinum product knowledge were held atJewellex 2000 to enlighten the jewellery industry on the complexities of theplatinum industry.The Hans Merensky Platinum Studio at the Technikon Pretoria, whichis sponsored in part by Anglo Platinum, Impala Platinum and LonminPlatinum, continues to achieve outstanding results in competitionand to train innovative and talented young manufacturers.37

Platinum Market Review" (continued)PLATINUM’S MAJOR APPLICATIONS INTHE CHEMICAL MARKET SECTORINDUSTRIALApplicationNitric acid productionProductsNitrogenous fertilisersExplosivesIndustrial demand for platinum rose by some 105 000 ouncesin 2000 to an estimated 1,46 million ounces, with strongoff-take from the electrical and glass sectors.Process catalystsBulk and specialitychemicalsChemicalIndustrial DemandThe use of platinum in catalysts for the manufacture ofspeciality silicones constitutes the largest portion of demandin the chemical segment. Speciality silicones are usedfor adhesives in the paper and construction industries.The growth in demand for platinum in the chemical sectorin the past few years can also be attributed to the increasein paraxylene production capacity, particularly in the Eastand Saudi Arabia. Paraxylene is used in the production ofpurified terephthalic acid (PTA). The use of platinum in thenitric acid industry declined in 2000 on account of theclosure of several facilities, particularly in Europe. Nitricacid is used predominantly in the production of fertilisers,and over the past few years declining demand has beenexacerbated by the excess supply of inexpensive productsfrom countries of the former Soviet Union.ElectricalStrong growth in personal computer sales, coupled withincreasing memory capacity requirements, led to anestimated 90 000-ounce increase in platinum demand inthe electrical sector. The use of platinum to enhance storagecapacity increased in 2000, with an estimated 90% of allcomputer hard disks containing platinum. In other electricaluses, an increase in steel output in 2000 resulted in anincrease in demand for platinum-containing thermocouples.INDUSTRIAL DEMAND for platinum rose by some 105 000 ouncesin 2000 to an estimated 1,46 million ounces.38

GlassThe increase in demand for personal computers was also largely responsible for an expansion of demand for platinumfrom the glass industry in 2000. Total platinum demand in the glass industry is estimated to have increased by 40 000ounces to 245 000 ounces in 2000 owing to strong demand for liquid crystal displays (LCDs).PetroleumDemand for platinum from the petroleum industry in 2000 increased in Asia but declined elsewhere, with the result thatthe industry’s total offtake dropped slightly to 110 000 ounces. The greatest increase in demand was due to the constructionof new refineries in India, and future growth of capacity is also expected to be largely in the East. New legislation coveringsulphur levels in gasoline and diesel promulgated in the USA by the Clinton administration has been confirmed by theEnvironmental Protection Agency.Fuel cellsThe principle of the fuel cell, the generation of electricity from a chemical fuel, was discovered in the nineteenth century.But interest in further development of the technology has accelerateddramatically during the last decade on account of increasing concern about theenvironment. Fuel cells do not burn fuel, so the system eliminates emissionssuch as carbon monoxide, nitrogen oxides and hydrocarbons associated withfossil fuel combustion generators. Furthermore, the emissions by fuel cells ofglobal warming gases such as carbon dioxide are far less than in the case ofelectricity generated by combustion of fossil fuels.PLATINUM APPLICATIONS IN THEELECTRICAL/ELECTRONICS SECTORHard disk coatingsThermocouplesFuel cellsIn 1990, the California Air Resources Board (CARB) announced that from 1998auto manufacturers would have to ensure that a growing proportion of theirvehicle output would consist of zero emission vehicles (ZEVs). In 1996, CARBchanged the year of implementation to 2003. On 25 January 2001, a new mandatewas passed, reducing the required production of ZEVs in 2003. The initiallegislation spurred an upsurge in research and development into the use of fuelcell technology in vehicles. The dramatic oil price hike in 2000 gave furtherimpetus to fuel cell development as auto manufacturers began to realise thatrechargeable electrical vehicles would place an exceptional strain on a powergrid already experiencing power outages. High oil prices make the expansionof capacity of the power grid by conventional means prohibitively high.Although different fuel cell technologies were initially examined, almost all ofthe prototype fuel cell vehicles in existence are powered by proton exchangeBENEFITS OF STATIONARY FUEL CELLSQuiet. No moving partsSelf-contained. No transmission linesVirtually no pollutants – if fuelled by hydrogenCo-generation of heat and powerHigh quality powerHigh fuel-to-energy efficienciesCan use a variety of hydrocarbon-based fuels39

Platinum Market Review" (continued)membrane fuel cells (PEMFC), which contain platinumFuel cellstackelectrodes. The production of fuel cell powered vehicles isexpected to contribute significantly to platinum demand inthe medium to long term.Some recent developments in the fuel cell industry areoutlined below:● Ballard, the recognised world leader in fuel cellmanufacture, released in January 2000 the company’sSinglefuel cellReactionchamberCathode2H20ExhaustIndustrial DemandO2O2Proton exchangemembrane (PEM) coatedwith platinum catalystGasdeliverypipesCathodeO2electrolyteAnode2H204e- 4H + 4e - 4H +Electric Current2H 22H 2Reformer orhydrogen tankO2 2H 2Drivers for change:fuel cars will have ahydrogen tank and anengine on the chassisH 2Anodelatest generation fuel cell stack, the Mark 900, which isdesigned for high volume manufacture. Ballard receivedorders for the Mark 900 throughout the year from itsalliance partners, Ford and DaimlerChrysler as well asother major auto manufacturers. Honda R&D Co Ltd, asubsidiary of the Honda Motor Company, placed anorder for the Mark 900 modules in January 2001.● The California Fuel Cell Partnership announced in June2000 that the United States Department of Transportation(DOT) had joined its public-private venture to demonstrateand promote fuel cell vehicles as a technology that isboth environmentally safe and commercially viable. Thepartnership, which formally began in April 1999,includes major auto manufacturers, energy providers,government agencies and fuel cell companies. DOT’sfuel cell experience will enhance the partnership’s fuelcell demonstration and infrastructure efforts. TheCalifornian Fuel Cell Partnership plans to test 50 fuelcell vehicles over the next three years.● Honda revealed in September 2000 the FCX-V3, a fuelcell powered vehicle that will be among the vehiclestested in California. The FCX-V3 has a hydrogen-fuelledfuel cell engine.Hydrogen tankFuel cell andelectric motorDEMAND IS expected to increase substantially in themedium term for residential fuel cells and in thelonger term for fuel cell vehicles.40

● Toyota Motor Corporation and General Motors Corporation announcedearlier this year that they would jointly develop a fuel cell vehicle that willconvert gasoline to hydrogen via an onboard converter. Other automanufacturers, for instance DaimlerChrysler, have already developed a numberof prototype fuel cell vehicles in which hydrogen is generated from methanol.Most auto manufacturers are developing their technology to use eithermethanol or gasoline, as opposed to pure hydrogen, as the fuel supply gridfor the fuels is already established. Furthermore, hydrogen storage posesgreater challenges than does storage of gasoline and methanol.Demand for platinum for fuel cells, at present relatively small, is expected toPLATINUM’S MAJOR APPLICATIONS INTHE GLASS MARKET SECTORTV sets and computer monitorsLiquid crystal displays (LCDs) for personalcomputersGlass substrates for hard disksGlass fibre productionincrease substantially in the medium term for residential fuel cells and in thelonger term with the commercialisation of fuel cell vehicles.WORLD DEMAND FOR PLATINUM IN“OTHER APPLICATIONS”Other applicationsOther applications requiring platinum, although individually small, togetherconsume a significant amount of platinum each year, and in 2000 demand forthese purposes grew by 8% to reach an estimated 365 000 ounces. The largestcontributor to the increase in demand was non-catalytic automotive uses suchas oxygen sensors and spark plugs. The extended warranty period required by theemissions legislation of the USA has increased demand for longer life spark plugs.Platinum plays an important role in medical applications, such as guidewireswith coiled platinum tips used in locating blockages in arteries and aselectrodes in pacemakers. Platinum is also used in the production ofanti-cancer drugs such as Cisplatin and Carboplatin,the latter being employed inconjunction with Taxol totreat advanced cancers.A new anti-cancer drug,Oxaliplatin, has recentlybeen developed to treatprostate cancer. Platinumis also used in somegold alloys in dentistry.%Oxygen sensors 18Spark plugs 20Anti-cancer drugs 4Catheters and pacemakers 15Dental 16Pollution control 7Turbine blades 11Other 9Total 10041

Platinum Market Review" (continued)OTHER METALSWhile platinum is the largest single contributor to AngloPlatinum’s revenues, the Group also produces significantamounts of other PGM’s (palladium, rhodium, iridium,ruthenium and osmium), gold and base metals (nickel,copper and cobalt). The combined revenue from these othermetals accounted for some 56% of total revenues in 2000.PalladiumOther MetalsTotal demand for palladium is estimated to have declinedby 10% in 2000, largely on account of lower purchases byautomobile consumers. In previous years inventories ofpalladium had increased substantially. In 2000, however,auto manufacturers reduced their stocks to mitigate the effectof higher prices in the market. Supply of palladium to themarket is expected to have declined slightly in 2000 owingto reduced shipments of Russian metal and lower SouthAfrican supplies after heavy rainfall adversely affectedoutput at the major platinum producers. Demand exceededsupply by an estimated 480 000 ounces, a shortfall whichafter 1999’s substantial deficit drove palladium prices torecord levels.DEMAND FOR PALLADIUM in 2000 exceeded supplyby an estimated 480 000 ounces, a shortfall which after 1999’ssubstantial deficit drove palladium prices to record levels.42

Gross palladium demand for the autocatalyst sector declined by an estimated 12% in 2000 as some auto manufacturersdrew on stocks built up in previous years. This is misleading, however, as actual usage of palladium in catalysts is estimated tohave been about 20% more than in the previous year. The introduction of Euro stage III legislation in Europe from thebeginning of 2000 boosted demand for palladium by nearly 20%, while automobile companies in North America needed450 000 ounces more as a higher proportion of vehicles manufactured in the year had to comply with LEV legislation.Many automobile companies, especially those in North America which have been heavily palladium-dependent, haveannounced that they will be reducing their reliance on palladium in the future. However, although increasing theirplatinum and rhodium content will aid the reduction of palladium in autocatalyst systems, palladium must be, and willcontinue to be, heavily used in order to comply with the more stringent hydrocarbon standards.An estimated 50% growth in the production of multi-layer ceramic capacitors (MLCC) in 2000 resulted in an increase indemand for palladium in the electronic industry. Many electronic companies built base metal MLCC plants in 1999 whenthe strengthening palladium price started to reduce their profitability. However, the massive demand for thesecomponents could not be met by base metal capacity alone, and palladium purchases for the electronic industry areestimated to have increased by 5% to 2,07 million ounces in 2000.The dental industry’s consumption of palladium is estimated to havedeclined by 22% to 870 000 ounces in 2000.The price of palladium, especially incomparison with that of gold,resulted in a marked shift towardsbase metal and gold-based dental alloys.Consumption of palladium in other applications, whichinclude jewellery and chemical applications, registered a small declinein 2000. Palladium is added to platinum for jewellery alloys,but with the higher prices for palladium in 2000 itbecame worthwhile to increase the amount of43

Platinum Market Review" (continued)platinum in the alloy. A reduction in the use of palladiumin white gold has also been achieved by the addition ofbase metals to the alloys, although the level of the latter injewellery alloys is limited by legislation in most regions.Palladium offtake in the chemical sector is expected to haveincreased by 8% over the previous year’s level on accountof demand for palladium catalysts for the production ofvinyl acetate monomer.Other MetalsRhodiumRhodium demand is estimated to have increased by 54 000ounces in 2000, with growth in all applications, while thesupply of rhodium is expected to have risen by almost50%. With the amendment of Russian legislation easingthe way for platinum and rhodium exports, Russia isestimated to have shipped up to 280 000 ounces of rhodium,more than four times the amount exported in 1999. Strongvehicle sales and increasingly severe emission legislationresulted in an increase in rhodium use in the autocatalystsector, with gross demand growing 11% to 563 000 ounces.The increase was muted somewhat by higher recoveries ofRHODIUM DEMAND is estimated to have increasedby 54 000 ounces in 2000, with growth in all applications, whilethe supply of rhodium is expected to have risen by almost 50%.44

hodium from autocatalyst scrap, which increased by 13 000 ounces. Demand in other applications expanded in the yeardue to increased purchases by glass and chemical manufacturers.NickelNickel remains one of the most volatile metals traded on the London Metal Exchange. After touching a low of US$1,71per pound (US$3 765 per ton) in late December 1998, it ended a dramatic 17-month bull run when it peaked in May 2000at US$4,81 per pound (US$10 600 per ton). The resurgence was due to producer cutbacks, commissioning setbacks to theAustralian laterite projects and strong stainless steel production.The turning point in May, however, was caused by the news that Inco would not go on strike. This development wasexacerbated by signs of a slowdown in stainless steel production and by an increased supply of nickel asproducers sought to benefit from the strong price rally by reversing earlier cutbacksannounced in 1999.By December 2000, sentiment in the market was markedlybearish. Although LME inventories had recorded ten-year lows,the market remained in backwardation. Indeed,prices continued to ignore the prolongedstrike at Falconbridge which was finallyresolved in February 2001 after 8 months.The nickel market is forecast to moveinto surplus in 2001. Just how large thesurplus will be will depend primarily onthe level of stainless steel production and the durationof the destocking process in the early part of the year.45

46Business Development

CREATING businessopportunities47

Business Development ReviewBusiness DevelopmentAs explained in the Chairman’s Statement, Anglo Platinum’s strategy is to develop theplatinum market and to exploit the growth opportunities thereby created throughthe expansion of its operations while at the same time moving down the cost curve.As indicated elsewhere in this report, the Anglo Platinum Board announced on16 May 2000 its decision to increase Group production from the 1999 base of2,0 million to 3,5 million ounces of refined platinum by the end of calendar year 2006at an estimated cost of R12,6 billion (in 2000 money terms). The additional metalwill be sourced from a number of new mines and from the expansion of existing minesin South Africa. To date, expansion projects accounting for some 1 million ounces ofplatinum per annum have been announced.Outlined below are details of the various mines and projects from which the additionalounces will be drawn.Mining expansion projectsBAFOKENG-RASIMONE PLATINUM MINEEstimated capital expenditureR1,2 billionProduction 200 000 tons per month and 250 000platinum ounces per year.Employees 2 800Life of mine25 yearsTargeted design capacity date2002 (first quarter)The Bafokeng-Rasimone Platinum Mine accounted for R370,7 million of the expansionexpenditure incurred during the year ended 31 December 2000.The opencast development has been completed, but development of the undergroundoperations was delayed by the excessive flooding in the first half of 2000. The designedmilling rate of 200 000 tons per month will be attained by October 2001, and refinedplatinum production is expected to exceed 190 000 ounces in 2001 owing to the plannedacceleration of future underground development as per the original plan.Designed underground output of 250 000 ounces per annum is expected to be reachedin 2002.AMANDELBULT UG2 EXPANSIONCapital expenditureR153,7 millionProduction60 000 tons per month and 72 000 platinumounces per year.Employees 478Life of mine80 yearsFull production date2000 (fourth quarter)The project was commissioned on time and within budget and is producing at theplanned rate of 72 000 ounces per annum.This project has proved to be an invaluable learning experience as regards UG2metallurgy, and is currently undergoing a process of further optimisation.Catalyst production line at Johnson Matthey48

Existing operationsEXISTING MINESW E S T ERN BUSHVELD•PietersburgRPM AMANDELBULTRPM UNIONPPRUST• •PotgietersrusThabazimbiLEBOWAEASTERN BUSHVELD•Northam• •Sun CityWarmbaths•SteelpoortZeerustPhokengBAFOKENG-RASIMONE• •••RustenburgBritsGroblersdal••LydenburgRPM RUSTENBURG•PretoriaBUSHVELD COMPLEX0 50kilometres•Witbank49

Expansion projectsEXPANSIONSMinesProcessPIETERSBURG SMELTERAMANDELBULT UG2UNION UG2 EXPANSIONMIDDELPUNT HILLMAANDAGSHOEKBAFOKENG-RASIMONERPM WATERVAL PROJECT UG2ACP PROJECT

Business Development Review" (continued)Business DevelopmentMIDDELPUNT HILL EXPANSIONCapital expenditureR83,10 millionProduction55 000 tons per month and 35 000 platinumounces per year.Employees 265Life of mine8,5 yearsFull production date2000 (fourth quarter)The project was commissioned in December 2000 and is producing at the plannedrate of 35 000 ounces per annum.MAANDAGSHOEK EXPANSIONEstimated capital expenditureR1,35 billion (2000 money terms)Production 200 000 tons per month and 162 000platinum ounces per year.Employees 1 500Life of mineOver 30 yearsTargeted design capacity date2002 (third quarter)The project will mine the farms Maandagshoek, Driekop South, Hendriksplaats,Winterveld and Onverwacht. Because of the extensive strike length of the propertiesinvolved, this mine can easily be expanded should market circumstances warrant it.Although the project was set back by delayed regulatory approvals, blasting at theSouth Portal commenced in November 2000. Authorisation was granted for theNorth Portal early in 2001, blasting commenced in February and shaft sinking isexpected to start in March 2001. As a result of these regulatory delays, the project iscurrently being rescheduled to accelerate the tonnage build-up in an endeavour tomeet the original plan.Joint venture discussions are continuing with African Rainbow Minerals (ARM)(the leader of a Black Economic Empowerment consortium) in terms of which it isproposed that the consortium will acquire a 50% interest in the project.MOOIHOEK255 KTSTEELPOORTRIVERLegendMerensky ReefUG2 ReefAuthorisation AreaNew incline ShaftsDRIEKOP253 KTMAANDAGSHOEK254 KTHENDRIKSPLAATS281 KTONVERWACHT292 KTDOORNBOSCH294 KTWINTERVELD293 KT•STEELPOORTGARATOUW282 KTHOEPAKRANTZ291 KTMAANDAGSHOEK AREA0 1 2 3 4 5kilometres50

RUSTENBURG SECTION UG2 EXPANSION (WATERVAL PROJECT)Estimated capital expenditureR1,31 billion (2000 money terms)Production400 000 tons per month and 395 000 ounces of platinum per year.Employees 500Life of mineOver 30 yearsTargeted design capacity date2002 (fourth quarter)On 11 September 2000 the Group announced a UG2 expansion project (the Waterval Project) at the Rustenburg Section of RPMto produce an additional 395 000 ounces of platinum per annum at a capital cost of R1,31 billion. The project is scheduledto reach full production in the fourth quarter of 2002.The project will mine from three existing shafts at Rustenburg Section – Bleskop, Brakspruit and Paardekraal. In addition,the new Waterval Mine will be developed with a twin decline shaft and a new concentrator having a capacity of 400 000 tonsper annum.Construction of the new Concentrator plant is under way and is progressing according to plan.UNION SECTION – UG2 EXPANSION PROJECTEstimated capital expenditureProductionEmployeesLife of mineTargeted design capacity dateR0,42 billion (2000 money terms)120 000 tons per month and 94 000 ounces of platinum per year.No additional employees requiredOver 30 years2003 (first quarter)On 12 December 2000, the Group announced an expansion project at the Union Section of RPM (UG2 Expansion Project)to produce an additional 94 000 ounces of platinum per annum at a capital cost of R423 million. The project is scheduledto reach full production in the first quarter of 2003. The project will take advantage of increased mechanisation andinfrastructure efficiencies. The project team is in place and expansion of concentrator capacity has commenced.Expansion of process facilitiesAnglo Platinum’s processing facilities are being expanded on a basis consistent with the expansion of its mining capacity.ANGLO PLATINUM CONVERTING PROCESS PROJECTConstruction commenced during the year on the Anglo Platinum Converting ProcessProject, which is designed to significantly reduce sulphur dioxide emissions from theWaterval Smelter complex in Rustenburg and to increase converting capacity.With a capacity of 72 000 tons per month of converter matte, the plant will be able totreat material containing 33 000 tons of nickel per year, which equates to some 4 millionounces of platinum per year.The total project is estimated to cost R1,45 billion and is scheduled for completion by 2004.All the major contracts have been awarded and the project is on target to meet thescheduled completion of phase 1 in 2002 and phase 2 in 2004.3 5003 000Planned expansionof refined platinumoutput’000 ozPIETERSBURG SMELTERApproval was granted in February 2001 for the construction at Pietersburg in theNorthern Province, of a new smelting complex with a capacity of 650 000 tons ofconcentrate per annum.The approved capital expenditure is R1,31 billion (in July 2001 money terms) and theproject is scheduled for completion in 2002. Furnace matte produced at the complexwill be transported to Rustenburg for treatment.2 5002 000200120022003200420052006Platinum ouncesThe final design of the new complex has reached an advanced stage and is currentlythe subject of an Environmental Impact Assessment.51

52Review of Operations

CREATING value incurrent operations53

Review of Operations – Overviews" Overview of Safety and Health . . .Safety and HealthThe Group is committed to ensuring the safety and health of its employees andstrives to ensure that all are aware of the nature of the dangers to which theymay be exposed. The Group’s “Zero Tolerance” initiative launched in August1999 is aimed at creating an optimum safety and health culture in the Groupand there is a growing awareness of this objective. It is therefore distressingthat Group safety performance deteriorated significantly from that achieved in1999. At year end, 23 employees (7 of whom were contractors) had lost theirlives in work-related accidents. The main cause of death was falls of ground(FOG), which claimed the lives of 12 employees in 11 separate incidents.During 1999, 3 employees were killed in 3 separate FOG incidents.In response, all safety programmes throughout the Group were re-examinedand hazard identification and risk assessment programmes were reviewed andupgraded where appropriate. All operations were audited by accredited thirdparties, such as International Risk Control Africa and the NationalOccupational Safety Association, in line with the requirements of the MineHealth and Safety Act and other pertinent legislation.Despite having its own policies on safety and health, Anglo Platinum decided toadopt formally the Anglo American plc Safety, Health and Environmental Policyand is currently redrafting its in-house policies accordingly.Significant work was performed by the Business Units in setting up and usingthe Anglo American plc database to record safety, health and environmentaldata for reporting and management purposes. There were major teethingproblems initially but these have essentially been resolved.In parallel with the introduction of the Anglo American plc database, workcontinued on the computerised Marknet occupational safety and healthmanagement system project to link all personnel, safety, occupationalhygiene/medicine, environment and public health data. All system changes foroccupational hygiene/medicine and safety were completed and roll-out to theBusiness Units commenced at year end. Environment and public healthmodules will roll out during the second quarter of 2001.During early 2000 it was felt that the safety, health and environment initiativeat Corporate level was somewhat fragmented. To rectify this situation a CorporateDepartment was created in which safety, occupational hygiene/medicine, publichealth and environment specialists report via the Group safety, health andRPM hospital theatre54

7654321Reportableinjury rateAnnual frequency rateper 1 000 employeesat work per monthenvironmental co-ordinator to the Executive Director : Operations. All liaison withAnglo American plc takes place via this department, and corporate governance issuesrelating to safety and related risks are addressed in conjunction with the Groupinternal audit function.Despite the tragic fatalities that occurred during the year, several significant achievementswere recorded: RPM-Union Section reached 3 million fatality-free shifts, RPM-AmandelbultSection 3 million fatality-free shifts, PPRust Opencast 1,5 million fatality-free shifts andthe plant at Lebowa in excess of 15 years without a reportable injury.Process Division had zero fatalities and Rustenburg Base Metals Refiners achieved2 million man-hours without a lost-time injury.00,60,51996199719981999Fatality rate2000Annual frequency rateper 1 000 employeesat work per monthThe Group’s medical services cater for the occupational health needs of the BusinessUnits and there is close liaison with the occupational hygienists and medical officers tocreate cost-effective occupational health surveillance programmes. The Marknetdatabase will assist greatly in streamlining thisinitiative. Noise remains the major problem in themining operations but other hazards, particularlyrelating to chemicals, have been identified and arebeing monitored in line with legislative requirements.0,4The HIV/AIDS epidemic continues to impact on the0,3organisation. Awareness campaigns, education and0,2distribution of condoms remain part of the Group0,1response and a high-level AIDS taskforce addresses0,0the issue from a strategic perspective. Where19961997199819992000practicable, anonymous, unlinked HIV testing hasbeen conducted in an attempt to quantify the extentof the problem in Anglo Platinum. This testing willbe continued, with all due regard to the extremelyQuarterly evacuation drillsensitive nature of the issue.SAFETYPeriod Number Fatality Number Reportable Fall of Truck andof rate(1) of rate(1) ground tram rate(2)fatalities reportables rate(2)Year ended31 December2000 23 0,47 209 4,28 1,31 0,45Year ended31 December1999 13 0,29 216 4,56 1,74 0,46(1) Annual frequency rate per 1 000 employees at work per month.(2) Annual frequency rate per 1 000 underground employees at work per month.Safety statistics include all contractors’ safety performance.Fire fighting training55

Review of Operations" Environmental Review . . .(continued)Environmental ReviewPolicyThe Group’s environmental policy and guidelines were redrafted during2000 to ensure their alignment with the Anglo American Policy onSafety, Health and the Environment (SHE). Each Business Unitperformed a self-assessment against the eight Management Principlescontained in the Anglo American SHE Policy. Generally satisfactorycompliance was reported across all Business Units in seven of theManagement Principles, namely Commitment, Risk Assessment,Prevention and Control, Performance, Evaluation, StakeholderEngagement and Continual Improvement. The reported level ofcompliance with the principle of Competence was not as satisfactory.This indicates that workforce competence regarding environmentaleducation, awareness and training needs more focus and attention. Theplanned restructuring of certain environmental functions during 2001 willaim at improving environmental competence within the Group.Management responsibility and accountabilityfor environmental managementEach Business Unit is responsible and accountable for its environmentalmanagement function. The Group Environmental Consultant acts in anadvisory and co-ordinating capacity. An Executive Safety, Health andEnvironmental Committee, chaired by the Executive Director: Operations,was established during the year.Environmental performance indicatorsIt was reported last year that environmental performance indicatorswere being formulated. The first step in this process, quarterly reportingof environmental data, was implemented during 2000. The next step ofthe process, the transformation of the data into consolidatedperformance indicators, will be completed during 2001.Local farming project56

Legal complianceLevel of implementation43210Average implementation of eachmanagement principle12345678The Environmental Management Programme Report (EMPR) for the Waterval Smelterwas approved by the relevant authorities during the year. All operating Business Unitsnow have formally approved EMPRs. An amendment of the RPM Rustenburg SectionEMPR was compiled and submitted to the regulators for approval during the year.This amendment was required for the new Waterval UG2 mining project at RPMRustenburg Section. An EMPR for the Maandagshoek mine was also compiled duringthe year and submitted to the regulators for approval. Although these two EMPRsmust still be approved, mining activities have commenced in both areas undertemporary mining authorisations.EMPR performance assessments were conducted at Bafokeng-Rasimone PlatinumMine, RPM Union Section, RPM Amandelbult Section, Potgietersrust Platinums, andPrecious Metals Refiners. Formal reports with findings and recommendations werecompiled for each assessment. It was found thatmost Business Units have to update their EMPRsto ensure their continued effectiveness andapplicability.Compliance audits regarding water permits wereconducted at RPM Union and AmandelbultSections and at Precious Metals Refiners. It wasfound that these Business Units complied with thepermits in all material aspects.Management principles:1 Commitment2 Competence3 Risk assessment4 Prevention and control5 Performance6 Evaluation7 Stakeholder engagement8 Continual improvementAnglo Platinum is not aware of any pendingenvironmental litigation and no fines or penaltieshave been imposed during 2000 for noncompliancewith environmental regulations andpermits. Any infringements are reported to therelevant regulators and remedial action is taken assoon as practicable in all instances.Return water damEnvironmental management systemsBafokeng-Rasimone mine commenced with the implementation of the ISO 14001Environmental Management System during the year. The final certification audit isplanned for early 2002.River water sampling57

Review of Operations" Environmental Review . . .(continued)Environmental ReviewEnvironmental monitoringProgrammes to monitor emissions to air, land and water are continuingwhere relevant at Business Units. These include:● Bio-monitoring of surface waters in dams, streams and rivers in thevicinity of the operations;● Fall-out dust monitoring;● Chemical analyses of ground and surface waters;● Ambient sulphur dioxide monitoring in the Rustenburg Region;● Particulate emissions from the smelters;● Chlorine emissions from the Precious Metals Refiners;● Satellite imagery and hyperspectral scanning of the RPM RustenburgSection lease area.The information generated is used in predictive models, to informremediation programmes, to determine impacts and to demonstratecompliance.Environmental incidentsThe environmental incident reporting system was streamlined during theyear. Reported environmental incidents are classified into three levels, withLevel 1 being minor incidents and Level 3 being reportable incidents interms of current legislation. The number of incidents reported in each Levelwill become a key feature of the environmental indicators to beimplemented during 2001.Environmental achievements● Successful completion of the public consultation exercises conducted fornew projects such as the Anglo Platinum Converting Process (ACP), theMaandagshoek project and the RPM Rustenburg Section Waterval UG2mining expansion.The nickel accumulating plantBerkheya coddii58

● Implementation of the SHE database data capturing system during the yearthroughout the Group.● Commencement of the development of an environmental management informationsystem for the Group.● Compilation of comprehensive legal registers for Precious Metals Refiners, WatervalSmelter and Bafokeng-Rasimone Platinum Mine.● Commencement of the construction of the Anglo Platinum Converting Process at theWaterval Smelter. This new process will reduce sulphur dioxide emissions fromabout 130 tons per day to less than 20 tons per day.● Continued phytoremediation of nickel-contaminated soil at the Base Metals Refinerswith the plant Berkheya coddii.● Anglo Platinum’s instrumental role in setting up the Rustenburg Air Quality Forum.Financial provision forrehabilitationThe accumulated funds in the Platinum Producers’Environmental Trust at 31 December 2000 wereR53,3 million. These funds will be used forrehabilitation and associated environmental costs atmine closure. The total estimated present valueof the liability as at 31 December 2000 wasR148,8 million consisting of R99,3 milliondecommissioning cost and R49,5 million restorationcost. The shortfall is funded by ongoing annualcontributions.Awards● Bafokeng-Rasimone Platinum Mine won the regional Excellence in MiningEnvironmental Management award for underground mines in the North-WestProvince (2000 year).● Anglo Platinum won the gold award in the Mining Section of the annual KPMG-University of Pretoria Environmental Reporting Survey for the Best EnvironmentalReporting in Annual Reports (1999 year).59

Review of Operations" Breakthrough initiatives . . .(continued)Breakthrough initiativesIn 1996, the Group embarked on a far-reaching programme, known as ProjectBreakthrough, to radically improve the business processes. After an initialdiscovery and design phase, the project was organised under four key thrusts:● Mining optimisation● People optimisation● Process optimisation● Group optimisationSince then various changes to the processes and structures have been designedand implemented throughout the organisation. The resulting benefits havebeen wide ranging and substantial, in terms not only of their financial impactbut also their long-term effect on corporate culture.In view of the changes that have taken place within the South African miningindustry over the past few years, combined with fundamental improvementsin the PGM market, a review of the future of Breakthrough was undertaken.The outcome of this review was a renewed endorsement of the need tocontinue with the project in order to help meet the challenges of the future,especially those relating to mechanisation and concentrator recoveries.Mining optimisation and process optimisationIndividual programmes have been focused on the improvement of the currentprocesses with the objective of increasing the productivity and output of thevarious operations. Significant improvements have been achieved since theircommencement.Despite a series of external factors which this year had a major negative impacton productive time and resulted in a reduction in square metres per stoping andcleaning employee, the Group achieved a new record of 684 tons milled peremployee.An analysis of the current mining operations carried out earlier in the year ledto a new programme being introduced to further improve undergroundoperational performance.Within the Process Division, further successes were achieved in the reductionof the inventory pipeline as well as the roll out of new technical improvements,many of which will be utilised in the new expansions.People optimisationWith the ongoing improvement in Group performance, there has been a needto review practices and design appropriate policies in the Human Resourcesfield. The new policies that have been developed cover inter alia, areas such asemployee relations, remuneration, Human Resource development andperformance management.Training in fault finding athydraulic workshop60

Extensive discussions and debates with stakeholders have taken place in order to ensureconsensus. These policies are to be implemented across the Group during 2001.Group optimisationThe introduction of Business Units and Business Areas with decentralised control andaccountability for profitability continues to be entrenched.New initiatives in the year included the commencement of a project to redesign thesupply chain by combining the functions from purchasing through to supplymanagement. This has been brought about in part by the introduction of the SAPsystem and will be further enhanced with the advent of e-procurement within theAnglo American group of companies.The personal development of senior managers has continued this year under the aegisof the Anglo Platinum Mastery programme. This programme is designed to assist theorganisation in developing the new competencies required to deal with the increasingchallenges of business in the new millennium.Further refinement of the Group incentive scheme took place this year with theestablishment of service level commitments being developed by the Corporate andOperations office. These commitments are designed to increase the added value thatthese offices contribute in supporting the Operational units.Breakthrough has achieved significant benefits to date and it is envisaged that theproject will continue to act as a catalyst for change and drive further improvementsthroughout the organisation.Anglo Platinum Organisational StructureEXECUTIVE DIRECTOR:FINANCER H H van KerckhovenPUBLIC AFFAIRSM MtakatiEXECUTIVE DIRECTOR:BUSINESS DEVELOPMENTJ A DreyerTECHNOLOGY DIVISION● Engineering Technology● Process Technology● Mining Technology● Purchasing ServicesCHIEF EXECUTIVEOFFICERB E DavisonEXECUTIVE DIRECTOR:COMMERCIAL*Appointment pendingEXECUTIVE DIRECTOR:OPERATIONSE FordPROCESS DIVISION● Waterval Smelter● RBMR● PMRBREAKTHROUGHB R Fleetwood (Acting)*Acting Executive Director: Commercial– D T G EmmettCorporateCHIEF OPERATINGOFFICERD T G EmmettEXECUTIVE DIRECTOR:HUMAN RESOURCESB E NgubaneEXECUTIVE DIRECTOR:PROJECTSAppointment pendingMINING DIVISION● Rustenburg Section● Amandelbult Section● Union Section● Potgietersrust Platinums● Lebowa Platinum Mines● Bafokeng-Rasimone MineOperations61

Review of Operations" Technology Division . . .(continued)Technology DivisionDuring the year under review an extensive re-structuring of the TechnologyDivision was carried out in order to align the functions handled by theDivision with the needs of the Group. The major driving force behind thisexercise was the Anglo Platinum expansion programme that was announcedduring the year, which the Division was actively involved in formulating. Inorder to create capacity to handle the expansion projects, and to improve thefocus on the objectives, the bulk of the operational support functions carriedout by the Division has been devolved to the appropriate line managementareas. This resulted in a significant reduction in total staff numbers, the restructuredteam being predominantly concerned with the technical and projectmanagement aspects of the expansion.Some of the major events that occurred during the year were:● Handover of the Bafokeng-Rasimone Platinum Mine from the project teamto operational management who will bring the mine to operational capacityin 2002● Commissioning and handover of the:RPM(Amandelbult) UG2 ExpansionMiddelpunt Hill UG2 Expansion● Design, proposal and approval of the following expansion projects:MaandagshoekThe Anglo Platinum Converting ProcessRPM(Rustenburg) Waterval UG2 ExpansionRPM(Union) UG2 ExpansionPietersburg SmelterIn addition to the above, feasibility studies have been carried out, or are inprogress, on a number of other opportunities. These will lead to furtherprojects as required by the expansion strategy.As part of the restructuring exercise, it was decided that the existingpurchasing and procurement departments, which offered a bureau service tothe organisation, should be redesigned on the basis of an integrated supplychain management concept. Studies indicated that substantial value could bederived from this approach to the purchasing and distribution of commoditiesand assets. This project was subsequently incorporated into the overalleBusiness project that Anglo Platinum, as part of the Anglo American group, isengaged in. This includes participation in the Quadrem global mining portal.Quantitative Electron Microscope(QEM – SEM II system)62

Metallurgical research and developmentPriorities for research and development during the year reflect the Group’s expansionprogramme, with a significant increase in the chemical and mineralogical analysis ofborehole core samples to assist in the quantification of ore reserve estimates.The same samples are used to confirm ore behaviour characteristics for processflowsheet design, making use of the growing database of, especially, UG-2 oreprocessing parameters which has been accumulated over a number of years. The needfor efficient management of technical information of all kinds has been addressed withthe creation of an electronic virtual library system, managed from Anglo PlatinumResearch Centre (ARC), for users throughout the Group.Planned mining research initiatives are expected to have a significant impact ondownstream processing, and the need to review, especially, future crushing andmilling practice, has been recognised. There is a potential opportunity for processsimplification and enhanced flotation recoveries.Testwork will be pursued through a new millingpilot plant to be constructed at Rustenburg.The new UG2 concentrators commissioned atAmandelbult and Lebowa incorporate featureswhich have evolved from fundamental studies ofmineral liberation and flotation surface chemistry.Analysis of the behaviour of these plants in normaloperation is yielding practical information thathighlights the need for a better understanding ofthe design and scaling-up of flotation equipment.This is a worldwide trend and a collaborativeresearch programme has been initiated through theAustralian Minerals Industry Research Association(AMIRA). This programme has other sponsors inAustralia, North America and South Africa.Low profile load hall dumperFundamental studies in mineral liberation and flotation surface chemistry have beenexpanded with the acquisition of a new Mineral Liberation Analyser and entry intofurther AMIRA collaborative research programmes. The understanding ofopportunities to modify the flotation grade/recovery relationship will provide importantdesign parameters for the smelter expansion programme.Time of flight secondary ion massspectrometer63

Review of Operations" Technology Division . . .(continued)Technology DivisionConcentrator process control studies are now being done at the ARC site; it isplanned to equip the facility to allow control optimisation of new plants to bedriven from this central point. Plans to incorporate on-line chemical analysisand other process parameters in control loops have been brought forward andthere is a full supporting research programme directed towards the on-lineanalysis of feed and tailings samples.The pilot plant for the Anglo Platinum Converting Process has continued toprovide valuable information to assist in the design of the full-size installationnow under construction at Rustenburg. Control strategies and limits of feedmatte composition are among the issues that have been investigated.Fundamental studies of furnace slag composition and fluxing requirements arebeing carried out within a collaborative research programme using facilities inMelbourne.Support for the phased expansion of the refining of base metals and platinumgroup metals embraces work at ARC, the Johnson Matthey Research Centreand universities in South Africa and Europe. Related studies are beingconducted with Anglo American Research Laboratories for a broader range ofbase metal applications.Mining technologyAnglo Platinum’s efforts in the area of mining technology are mainly directedat achieving significant increases in profitability by optimising technology forthe mining of narrow seam UG2 Chromitite Reef.A suite of appropriate technology is being implemented on both existingmines and new mining projects. The areas concentrated upon include:● Stope drilling, blasting and cleaning● Stope mechanisation● Stopeface rockcutting● Rapid development advanceAchieving a quality daily blast remains a priority, and to this end a miningoptimisation project is under way. The goal is to improve face advance perblast and a reduction in lost blasts on a Group-wide basis by applying the bestmining practices as identified at a pilot site.Instrumentation workshop64

The introduction of stope drill rigs and shocktube initiation systems has beenaccelerated with the aim of improving current labour efficiencies. A project to test acontinuous mechanised rockcutting and cleaning mining system has been initiated.Mechanised longhole stoping is being introduced at Rustenburg Section after a projecttrial proved the system to be viable.Mechanised bord and pillar stoping, incorporating a full suite of trackless equipmentand conveyor transportation, has been successfully introduced at a pilot site and iscurrently being rolled out on a Group-wide basis for those existing operations andexpansion projects to which this mining method is ideally suited.Anglo Platinum’s ultimate goal is non-explosive, continuous mining, and the majorpart of mining research and development resources is being focused on UG2 rockcutting. The Group is currently funding both the oscillating disc and activated disccutting testwork and will test and evaluate a full-scale prototype mining system inearly 2001.In the field of rapid development advance, drill rigshave been introduced for haulages and a tunnelborerproject is currently under way for reef raisedevelopment.Horizontal hydrotransport of ore by means of aTORE pilot plant was achieved and verticalhydrohoisting of ore is to follow. The TORE systemis designed to handle slurries with a high solidscontent.Elongate supportPre-stressed elongate support has been introducedthroughout the Group as in-stope support. In-stoperock bolting has also been introduced into a number of the operations to provideadditional support close to the face.Mechanised longhole stope drillingA new seismic system has been commissioned at Union Section and another has beenpurchased for Frank 2 Shaft at Rustenburg Section. Use is also being made of theGround Motion Monitor state-of-the-art recording technology.Computerised planning (CADSMINE) has been introduced and is being extensivelyused for long-term planning as well as for all new mine design and scheduling.Mechanised drilling in 1,8 m bord andpillar UG2 stope65

Glossary of terms: OperationsGlossary of Terms: OperationsARISINGS: The valuable product after a stage in processing.BENCH: The equivalent of a level in an underground mine most noticeable asthe step-like features in any open-pit wall. The open-pit bench height iscalculated to match the rock strength, pit economics and capabilities of the open-pitmachinery. Typical bench heights in open-pit mines range from 10 to 20 metres.BEST CUT: The optimum stoping width for mining of the reef at prevailingmetal prices and costs.BUILT-UP HEAD GRADE: The total 4E grams produced from theconcentrating process from concentrate, metallics (where applicable) and tailingsdivided by the total tons milled. See definition of 4E below.CONCENTRATING: This is the process of separating milled ore into awaste stream (tailings) and a valuable mineral stream (concentrate) by theflotation operation. The valuable minerals in the concentrate contain almost allthe base metal and precious metal minerals; these minerals are treated further bythe smelting and refining process to obtain the pure metals (Cu, Ni and PlatinumGroup Metals).DECLINE: A generic term used to describe a shaft at an inclination below thehorizontal and usually at the same angle as the dip of the reef.DEVELOPMENT: Any tunnelling operation which has for its object eitherexploration or exploitation.FACE ADVANCE: The average distance the stope face advances permonth. A measure of resource utilisation.FLOTATION: In the flotation process milled ore mixed with water or pulpis passed through a series of agitated tanks. Various chemicals are added to thepulp in sequence to render the valuable minerals hydrophobic (water repellant)and the non-valuable minerals hydrophilic (water loving). Air is dispersedthroughout the agitated tanks and rises to the surface. The hydrophobic particlesattach to the rising air bubbles and are removed from the main volume of pulp asa soapy froth. In this manner various combinations of flotation cells in series areutilised to produce a concentrated stream of valuable mineral particles called the‘concentrate’ and a waste pulp stream called ‘tailings’.g/t: Grams per ton. The unit of measurement of grade. One gram per ton is onepart per million.IMMEDIATELY AVAILABLE ORE RESERVES: Ground availablefor mining without any further development.IN SITU: The original, natural state of the orebody before mining orprocessing of the ore takes place.MERENSKY REEF: A band in the Bushveld sequence often containingeconomic grades of PGM. Merensky Reef is the principal reef mined atRustenburg Platinum Mines.MILLING: Process to reduce broken ore to a size where concentrating can beundertaken.MINING AREA:mine has been granted.The area for which a mining authorisation/permission toPGM: Platinum Group Metals. Six elemental metals of the platinum groupnearly always found in association with each other. Some texts refer to PGE –Platinum Group Elements. These metals are: platinum, palladium, rhodium,ruthenium, osmium and iridium.66

PLATREEF: The name of the ore mined at PotgietersrustPlatinums.STOPING: Operations directly associated with the extractionof reef.STRIPPING RATIO: The number of units of unpayablematerial which is to be mined in order to expose one unit of ore.SAMREC: The South African Mineral Resources Committee.SWEEPINGS: The final process in stoping operations wherethe footwall is thoroughly cleaned to remove the last portion ofbroken ore and fines.TAILINGS: That portion of the ore from which most of thevaluable material has been removed by concentrating and whichtherefore is low in value and is rejected.TAILINGS GRADE: The 4E content of the tailingsproduced by the milling and concentrating process – when comparedto head grade is a measure of the efficiency of the concentratingprocess.TRANSPORT: The moving of broken rock to the shaft andthe transport of men and materials to the working faces.UG2: A chromite reef in the Bushveld sequence often containingeconomic values of PGM.UNOXIDISED ORE: Ore that has not undergone changes/degradation due to the weathering process close to surface.OXIDISED ORE: Ore that has decomposed by exposure tosurface and near-surface elements.4E: Four Elements. The grade at Anglo Platinum mines is alwaysmeasured as the combined content of the four most valuableprecious metals – platinum, palladium, rhodium and gold.Resource definitionsThe mineral resources and mineral reserves of the Group are classified,verified and reported in accordance with statutory, stock exchangeand industry/professional guidelines. The classifications are basedon the SAMREC Code.Reporting is by professionals with appropriate experience in theestimation, evaluation, exploitation and reporting of mineralresources and mineral reserves relevant to the various styles ofmineralisation under consideration. The Group’s experience withthe various ore bodies spans tens of years.Where mineral resources as well as mineral reserves are quotedfor the same property, these are in addition to the mineral reserves.Attention is drawn to the fact that the term “resources” excludesany diluting materials that will arise as a consequence of the miningmethod and specific geological circumstances applicable to themining of that resource. The term “reserves” on the other hand,includes all expected dilution.A ‘MINERAL RESOURCE’ is a concentration oroccurrence of material of economic interest in or on the Earth’scrust in such form and quantity that there are reasonable and realisticprospects for eventual economic extraction. The location, quantity,grade, continuity and other geological characteristics of a MineralResource are known, estimated from specific geological evidence andknowledge, or interpreted from a well constrained and portrayedgeological model. Mineral resources are subdivided, in order ofincreasing confidence in respect of geoscientific evidence, intoInferred, Indicated and Measured categories.An ‘INFERRED MINERAL RESOURCE’ is thatpart of a Mineral Resource for which tonnage, grade and mineralcontent can be estimated with a low level of confidence. It isinferred from geological evidence and assumed but not verifiedgeological and/or grade continuity. It is based on informationgathered through appropriate techniques from locations such asoutcrops, trenches, pits, workings and drill holes that may belimited or of uncertain quality and reliability.An ‘INDICATED MINERAL RESOURCE’ is thatpart of a Mineral Resource for which tonnage, densities, shape,physical characteristics, grade and mineral content can beestimated with a reasonable level of confidence. It is based onexploration, sampling and testing information gathered throughappropriate techniques from locations such as outcrops, trenches,pits, workings and drill holes. The locations are too widely orinappropriately spaced to confirm geological and/or gradecontinuity but are spaced closely enough for continuity to beassumed.A ‘MEASURED MINERAL RESOURCE’ is thatpart of a Mineral Resource for which tonnage, densities, shape,physical characteristics, grade and mineral content can beestimated with a high level of confidence. It is based on detailedand reliable exploration, sampling and testing informationgathered through appropriate techniques from locations such asoutcrops, trenches, pits, workings and drill holes. The locationsare spaced closely enough to confirm geological and/or gradecontinuity.A ‘MINERAL RESERVE’ is the economically mineablematerial derived from a measured and/or indicated MineralResource. It is inclusive of diluting materials and allows for lossesthat may occur when the material is mined. Appropriate assessments,which may include feasibility studies, have been carried out,including consideration of, and modification by, realisticallyassumed mining, metallurgical, economic, marketing, legal,environmental, social and governmental factors. These assessmentsdemonstrate at the time of reporting that extraction is justifiable.Mineral Reserves are subdivided in order of increasing confidenceinto Probable Mineral Reserves and Proved Mineral Reserves.A ‘PROBABLE MINERAL RESERVE’ is theeconomically mineable material derived from a Measured and/orIndicated Mineral Resource. It is estimated with a lower level ofconfidence than a Proved Mineral Reserve. It is inclusive of dilutingmaterials and allows for losses that may occur when the materialis mined. Appropriate assessments, which may include feasibilitystudies, have been carried out, including consideration of, andmodification by, realistically assumed mining, metallurgical,economic, marketing, legal, environmental, social and governmentalfactors. These assessments demonstrate at the time of reportingthat extraction could reasonably be justified.A ‘PROVED MINERAL RESERVE’ is theeconomically mineable material derived from a Measured MineralResource. It is estimated with a high level of confidence. It isinclusive of diluting materials and allows for losses that mayoccur when the material is mined. Appropriate assessments,which may include feasibility studies, have been carried out,including consideration of and modification by realistically assumedmining, metallurgical, economic, marketing, legal, environmental,social and governmental factors. These assessments demonstrate atthe time of reporting that extraction is reasonably justified. AngloPlatinum’s Proved Reserves are contained within the limits of thefive-year mining plans of any of its operations.67

68Mining Operations

Mining Treatment & Refining ProcessesThe Process Divisionconsists of the WatervalSmelter complex, theRustenburg Base MetalsRefinery and the PreciousMetals Refinery, all ofwhich are located inRustenburg. The processplants produce theGroup’s refined preciousand base metals.MiningWASTEMiningTAILINGSMILLINGFILTRATIONFLOTATIONConcentratorsREEFCONVERTINGSMELTINGSmeltersCONCENTRATECONVERTER MATTESULPHURICACIDLOW GRADERESIDUEMEDIUMRESIDSLAGPrecious Metals RefineryDISSOLVE PROCESSINGVALUES RECOVERYPLANT PURE METALPRODUCTSMETALLICSFINAL CONC69

NORTHERNPROVINCEPPRUSTLEPLATSRPM AMANDELBULT●WarmbathsPotgietersrus●MIDDELPUNT HILLMAANDAGSHOEKNORTH WESTPROVINCERPM UNIONBAFOKENG-RASIMONE●Lydenburg●ZeerustPhokeng●RPM RUSTENBURG●Rustenburg●GAUTENGPretoriaMPUMALANGA●WitbankGRADEUEBushveld complexLease areasBAFOKENG-RASIMONEPLATINUM MINELEACHINGPROCESSINGELECTRO-WINNINGBase Metals RefineryLOW GRADE RESIDUEMEDIUM GRADE RESIDUELocation of Group OperationsSODIUMSULPHATENi/Cu/CoCONCENTRATERustenburg Section, the largest ofthe mining operations, contributed33,7% of the platinum ouncesproduced, Amandelbult Section30,5%, Union Section 15,4%,Potgietersrust Platinums (PPRust)10,4% and Lebowa Platinum Mines(Leplats) 3,9%. Bafokeng-Rasimonemine, which is expected to reachfull production during 2002,contributed 6,1% from opencastand underground operations.Maandagshoek, the mining projectannounced in December 1999,is expected to reach plannedproduction of 162 000 ounces ofplatinum per annum by 2003.M C PlantMAGNETIC CONCENTRATELEACHINGPURE METALENTRATE70

Operations and End-Product Flow ChartCoCuNiPdIrPtRuAuRhOs71

The Group produces platinum as a primaryproduct together with palladium, rhodium,iridium, ruthenium and osmium as well asgold, nickel, copper and cobalt.In 2000 the operations produced 1,872 millionounces of refinedplatinum.The Group’soperations consistof six mines andthree processplants.Global Platinum Markets72

ANGLO PLATINUM mines,processes, refines andmarkets platinum, otherPGMs and base metalsand dedicates itsoperational efforts tooptimising the useof its resources73

Review of Operations – Mining" Anglo Platinum Mining OperationsOverviewOre reservesRUSTENBURG PLATINUM MINES (RPM) holds mineralMining Operationsrights throughout the Bushveld Complex under various titles. These arecurrently being exploited at the Rustenburg, Amandelbult and UnionSections, covering a total of 21 133 hectares. Letters of intent have beenobtained to mine on adjoining areas covering a total area of 4 707 hectares.The Bafokeng-Rasimone mine is still under development on the farmBoschkoppie and covers a total area of 3 362 hectares. RPM granted ImpalaPlatinum Limited (Impala) a mineral lease over a portion of the farmBoschkoppie measuring 496 hectares in exchange for similar rights overportion of the farm Moddergat.The State granted RPM a mineral lease over a portion of the farmAmandelbult falling outside Amandelbult Section’s current downdipmining lease area. This area is 659 hectares in extent. RPM ceded a portionof this mineral lease measuring 461 hectares to Northam Platinum Limited(Northam) and in exchange received a 20% shareholding in Northam.RPM and Impala entered into an exchange agreement in terms of whichImpala exchanged the rights to minerals over the farm Hendriksplaats 281 KTfor RPM’s rights to minerals over the farms Clapham 118 KT and a portion ofthe farm Forest Hill 117 KT. RPM also granted Impala a sub-lease over aportion of the farm Driekop 253 KT in exchange for a royalty.RPM also announced its intention to start a new mine in the Burgersfortdistrict. The new mine includes portions of the farms Maandagshoek 254 KT,Onverwacht 292 KT and Winterveld 293 KT. The farm Hendriksplaats 281 KT,which RPM acquired from Impala, and the remaining portion of the farmDriekop 253 KT, will form part of the mine. The total extent of the area is11 756 hectares. RPM was granted a mining licence by the Department ofMinerals and Energy over the whole area.The Bushveld Complex’s two most widely occurring and best known PGMore bodies, the Merensky and UG2 reefs, occur on RPM’s properties. Thesenarrow tabular orebodies have been extensively and successfully mined byRPM in the Western Bushveld and their characteristics are well known.240 mm drill rigspreparing to drill74

Review of Operations – Mining" Anglo Platinum Mining OperationsOverview(continued)Mining OperationsPOTGIETERSRUST PLATINUMS (PPRUST) is engaged in themining of the PGM and base metals which are an integral part of the Platreef PGMores. PPRust holds mineral rights over an area of 7 009 hectares on the Platreef inthe Potgietersrus and Mokerong districts and, in terms of mineral lease agreementswith the Lebowa Mineral Trust, has the right to mine a further 6 888 hectares.A mining authorisation has been issued for an area of 313 hectares.The properties over which the Company has the rights to mine are situated onthe Northern (Potgietersrus) Limb of the Bushveld Complex. The host rock onthe mine properties is the Platreef, the local equivalent of the Merensky reefwhich occurs in the other areas of the Bushveld Complex.LEBOWA PLATINUM MINES (LEPLATS) is engaged in themining of platinum group and base metals of the UG2 and Merensky PGM ores.During the past year, Anglo Platinum and the Department of Minerals andEnergy (representing the Lebowa Mineral Trust) concluded an agreement interms of which the Joint Venture Agreements (JVA) previously entered intobetween companies in the Anglo Platinum Group and the former Lebowa Stateand others were cancelled and superseded by a new agreement.The JVA gave the Anglo Platinum Group the right to mine the platinum groupmetals and the ores thereof on a number of farms in the Northern Province(Eastern Bushveld). In terms of the new agreement, certain companies within theAnglo Platinum Group were granted mineral leases over several of the farmspreviously held under the JVA for a period of 25 years with an option to renewthese leases for a further 25 years.The mineral leases grant Anglo Platinum the right to mine the platinum groupmetals and the associated metals and minerals. Anglo Platinum agreed to releasecertain other farms held under the JVA subject to specific conditions. This agreementsecures for Anglo Platinum on the Eastern Limb of the Bushveld Complex, themineral resources required for its current production and future expansion plans.COMBINED ORE RESERVESThe table below lists the combined ore reserve status of the Anglo Platinumoperations and details are recorded in the reports of the individual BusinessUnits. The reserves for the proposed UG2 mine at Maandagshoek and mineralresources for the Twickenham and Der Brochen exploration prospects have beenincluded in the table.Vertical shaft and concentrator at LeplatsThe SAMREC Code for the reporting of reserves and resources has been applied,as defined in the Glossary of Terms: Operations on page 66. This is consistentwith the reporting basis used by Anglo American plc.76

ANGLO PLATINUM GROUP COMBINED MINERAL RESERVES AND MINERAL RESOURCESAS AT 31 DECEMBER 2000Merensky/MillionsTotal mineral reserves Platreef UG2 Total oz 4E2000 1999 2000 1999 2000 1999 2000 1999Proved Tons (millions) 93,79 107,96 51,77 44,41 145,56 152,374E grade (g/t) 5,44 5,28 4,69 4,70 5,17 5,11 24,30 25,02Probable Tons (millions) 665,40 667,00 684,02 808,00 1 349,42 1 475,004E grade (g/t) 4,77 4,90 4,83 5,01 4,80 4,97 221,30 235,70Total mineral resources*Indicated Tons (millions) 760,43 167,00 863,50 — 1 623,93 167,004E grade (g/t) 5,07 4,90 5,59 — 5,34 4,90 279,1 26,31The lives of the Group’s mines, based on proved, probable and indicated reserves are estimated to be in excess of 50 years at current milling rates.*Mineral resources are separate from and additional to, mineral reserves.Overview of current explorationIn view of Anglo Platinum’s assessment of future demand for platinum group metals, it was necessary to accelerate theevaluation of certain of the Group’s mineral rights in addition to undertaking normal exploration programmes. This resultedin the completion of a record 93 000 metres of exploration drilling, much of which was focused on the Eastern Bushveld properties.In consequence, there has been a substantial increase in the reportable mineral resources of Anglo Platinum, commensuratewith the requirements of the Group’s targeted production of 3,5 million ounces of platinum in 2006.Comments on international exploration appear in the Chairman’s Statement.ANALYSIS OF GROUP CAPITAL EXPENDITURE2000 2001 (Projected)R millionsR millionsMINING Ongoing Expansion Ongoing ExpansionRustenburg Section 161,6 211,7 673,4 715,4Amandelbult Section 83,4 154,0 250,1 —Union Section 126,9 5,0 155,3 283,6Potgietersrust Platinums 53,5 4,3 211,2 60,9Lebowa Platinum Mines 19,6 83,4 75,0 50,0Bafokeng-Rasimone Platinum Mine 2,1 370,7 174,2 191,8Maandagshoek Project* — 34,5 — 835,7Total mining 447,1 863,6 1 539,2 2 137,4PROCESSWaterval Smelter 12,0 466,2 48,0 987,4Rustenburg Base Metals Refiners 32,5 17,0 94,5 126,4Precious Metals Refiners 7,9 3,6 96,9 211,0Pietersburg Smelter Project — — — 625,5Total Process 52,4 486,8 239,4 1 950,3Total Other Capital Expenditure 69,8 — 130,7 —Grand Total Anglo Platinum Capital Expenditure 569,3 1 350,4 1 909,3 4 087,7*Total project expenditure, including joint venture partner.The capital expenditure for each Business Unit is referred to in the Review of Operations – Mining and Review ofOperations – Process sections of this report.77

Review of Operations – Mining" Anglo Platinum Mining OperationsOverview(continued)TOTAL CAPITAL EXPENDITURE FOR MINING ANDPROCESSOPERATIONSThe total expenditure for the 2000 financial year was R1 849,9 million, of whichR1 350,4 million was for expansion and R499,5 million was for renewals andreplacements.Mining OperationsThe total projected expenditure for the 2001 financial year is R5 866,3 million,of which R4 087,7 million is for expansion purposes and R1 778,6 million isfor renewals and replacements.CONSOLIDATED PRODUCTION STATISTICSFinancial yearProduction statistics 2000 1999 1998 1997 1996Tons mined – PPRust(opencast) (thousands) 30 183 34 730 30 903 32 983 24 766Tons broken –Underground mines (thousands) 19 613 20 824 20 688 19 948 17 917Tons milled– Merensky Reef (thousands) 13 729 13 582 13 981 14 031 12 759– UG2 (thousands) 6 311 5 212 4 203 3 667 3 173– Platreef (thousands) 4 177 4 059 3 182 2 969 3 025– Other (thousands) 358 — 645 452 785Total tons milled (thousands) 24 575 22 853 22 011 21 119 19 742% UG2 mined to total output 26 23 19 17 16Built-up head grade (g/ton) 5,05 5,40 5,52 5,53 5,47Immediately availableore reserves (months) 14,0 16,1 15,9 16,3 16,1Average number of mineemployees – Underground mines 33 160 32 457 33 194 33 650 32 529– Opencast mine(PPRust) 1 172 1 044 543 624 830– projects 1 589 543 694 743 214Total average number ofmine employees 35 921 34 044 34 431 35 017 33 573Efficiency measuresMetres face advance (per month) 8,4 9,4 9,2 8,5 8,1Square metres per stopingand cleaning employee (per month) 35,9 40,0 39,3 36,3 34,8Tons broken per totalemployee – Underground mines 564 634 620 587 547Tons mined per totalemployee – PPRust 25 753 29 583 28 935 32 656 29 839Training in concentrator plant78

CONSOLIDATED OPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 8 287 4 366Cash operating costs per Pt ounce refined (R) 3 137 2 500Cash operating costs per 4E kilogram refined (R) 61 263 48 987Consolidated operating income statement(R millions)Net sales revenue 15 537,0 8 518,0Operating cost of sales* (6 167,2) (5 056,7)Operating contribution 9 369,8 3 461,3Operating margin % 60,3 40,6*Cost of sales excluding other costsANALYSIS OF OPERATING CONTRIBUTION BY MINEFinancial year2000 1999RmRmRustenburg Section 2 700,3 1 114,6Amandelbult Section 3 200,8 1 324,0Union Section 1 534,1 543,3Potgietersrust Platinums 1 318,1 414,2Lebowa Platinum Mines 242,5 60,9Bafokeng-Rasimone Platinum Mine 374,0 4,3Consolidated operating contribution 9 369,8 3 461,3Other costs 508,6 282,0Gross profit on metal sales 8 861,2 3 179,32000 199914,1%2,6%4,0%28,8%15,7%12,0%1,8% 0,1%32,2%16,4%34,1%38,2%Rustenburg SectionAmandelbult SectionUnion SectionPotgietersrust PlatinumsLebowa Platinum MinesBafokeng-Rasimone Platinum Mine79

Review of Operations – Mining" Business Unit ReportRustenburg SectionP M CoetzerREGIONAL BUSINESSMANAGER #L HeynekeHUMAN RESOURCEMANAGER #A RudolphBUSINESS MANAGER,WEST #R ThompsonMANAGER LOGISTICS #J F S UngererBUSINESS AREAMANAGER EAST #J E van der WesthuizenMANAGER FINANCEAND INFORMATION #P R S van DorssenBUSINESS MANAGER,WATERVAL #L ZindiECONOMIC RESOURCEMANAGER #Rustenburg SectionP M CoetzerMineral reservesMost of Rustenburg Section’s mineral reserves arecontained within the current area of the miningauthorisation. The substantial increase in tonnage forprobable UG2 reserves is a result of the work done inrespect of new UG2 projects. The lower PGM gradefor this category reflects the adoption of a wide-stope,mechanised mining approach on some of these projects.MINERAL RESERVES AS AT 31 DECEMBER 2000Underground Merensky UG2Proved Tons (millions) 22,60 12,914E grade (g/t) 6,35 4,81Probable Tons (millions) 97,34 75,004E grade (g/t) 6,24 4,50Safety and healthThe period under review was extremely disappointing in terms of safety.Though the underground sections showed an improvement in their injury rates,they failed to improve on their previous performance in reducing fatality rates.Most disturbing is the fact that eleven fatalities were recorded during the year,nine of which were due to falls of ground. In order to restore Rustenburg’ssafety performance certain projects were initiated:● The “Big Six” project strives to highlight the dangers and eliminate theinjuries caused by falls of ground, truck and tram, scraping, rigging, orepassand gas-related incidents.● The “Fogstop” campaign targets falls of ground hazards.● The introduction of a Risk Management System is enhancing the Group’s safetyculture and its trade unions and associations are being educated in the skillsof Safety Management.A major safety initiative has been implemented in the form of the “ZeroTolerance” campaign.12345678910LegendMerensky ReefUG2 ReefAuthorisation AreaAuthorisation PendingBoschfontein Incline ShaftTownlands ShaftPaardekraal ShaftFrank No. 2 ShaftFrank ShaftWaterval Vertical ShaftCentral Deep ShaftTurffontein ShaftBleskop ShaftBrakspruit ShaftBOSCHFONTEIN268 JQ1TOWN &TOWNLANDS272 JQRUSTENBURG SECTION2PAARDEKRAAL279 JQ0 1 2 3 4 5kilometres35WATERVAL303 JQ6 7 94KLIPGAT281 JQKROONDAL304 JQTURFFONTEIN302 JQ8KLIPFONTEIN300 JQ10BRAKSPRUIT299 JQLong hole stope drillingproject Boschfontein Shaft80

Review of Operations – Mining" Business Unit ReportRustenburg Section (continued)L HeynekeA RudolphR ThompsonJ F S UngererJ E van der WesthuizenP R S van DorssenL ZindiFlotation cells at Rustenburg SectionRustenburg SectionOn a more positive note, the international Common Audit Process (CAP)was introduced successfully: three Business Areas achieved a level 4 Statusand the other three Business Areas a Level 3 Status.Rustenburg Section maintains the distinction of being the only hard rock mine inthe South African mining industry to have achieved one million fatality-freeshifts on no fewer than 32 occasions.During the year Rustenburg Section achieved one million fatality-free shifts; twounderground Business Areas achieved one million underground fatality-free shifts.Rustenburg Section was awarded the new Mines Health and Safety Council OneMillion Award during the year. One mine overseer has achieved two millionfatality-free shifts, which took some 17 years and is a first for RustenburgSection and for the Group.Frank and Klipfontein Concentrators achieved two consecutive years without alost-time injury.The mine is confident that the action plans now being implemented will bringabout a major improvement in safety performance.SAFETYPeriod Number Fatality Number Reportable Fall of Truck andof rate (1) of rate (1) ground tram rate (2)fatalities reportables rate (2)Year ended31 December2000 11 0,55 104 5,25 1,94 0,60Year ended31 December1999 5 0,30 103 5,24 2,09 0,70(1) Annual frequency rate per 1 000 employees at work per month.(2) Annual frequency rate per 1 000 underground employees at work per month.Safety statistics include all contractors’ safety performance.HIV/AIDSRustenburg Section has successfully introduced a comprehensive HIV/AIDScontainment programme that focuses on the workplace and community.Anonymous, unlinked HIV surveillance will commence in the workplace earlyin 2001.MiningThe mining restructuring is still progressing as planned. Compared with theprevious year’s figure, overall mining efficiencies decreased from 41,0 to 36,7 squaremetres per stoping and cleaning employee owing to the flooding of three shafts, thebreakdown of the main compressor at Turffontein Shaft and the protected strike.The UG2 ore tons to mill made up 15% of the total tons milled as comparedwith 9% the previous year. Mining research and development at TownlandsBusiness Area and Bleskop Shaft promises great potential for the future. Theinitial results of mechanisation and new mining layouts are very encouraging.Rustenburg Section has implemented “Best Practice” stopes for trainingpurposes in all business areas.82

The first phase of the Mines Planning Systems implementation is almost complete and the next phase of the MinesOperating System implementation will start in 2001. Rustenburg Section started implementing the mineral resourcemanagement programme in order to comply with the SAMREC Code.MINING CAPITAL EXPENDITURETotal capital expenditure for the year amounted to R373,3 million, of which R211,7 million was for expansion and R161,6 million wasongoing. The expansion expenditure included R118,0 million for the 400 000 tons per month UG2 project. Projected totalexpenditure for the 2001 financial year is R1 388,8 million, of which R715,4 million is for the 400 000 tons per month UG2 project.PRODUCTION STATISTICS AND EFFICIENCY MEASURESFinancial year2000 1999 1998 1997 1996Tons broken (thousands) 7 734 8 837 8 820 8 605 7 971Tons milled (thousands) 7 215 7 701 8 003 7 774 7 420Built-up head grade (g/ton) 5,32 5,65 5,67 5,70 5,69Immediately available ore reserves (months) 16,1 15,9 15,6 14,4 13,9Metres face advance (per month) 8,6 9,2 9,0 8,6 8,5Square metres per stoping andcleaning employees (per month) 36,7 41,0 40,4 37,2 35,6Tons broken per total employee 476 536 522 495 478Average number of mine employees – excluding projects 16 256 16 481 16 902 17 368 16 668– projects — — — — —Total average number of mine employees 16 256 16 481 16 902 17 368 16 668% UG2 mined to total output 15 9 7 6 5OPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 8 019 4 225Cash operating costs per Pt ounce refined (R) 3 580 2 708Cash operating costs per 4E kilogram refined (R) 73 261 56 079Operating income statement(R millions)Net sales revenue 5 060,6 3 128,1Operating cost of sales* (2 360,3) (2 013,5)Operating contribution 2 700,3 1 114,6Operating margin % 53,4 35,6*Cost of sales excluding other costsSALIENT STATISTICSFinancial yearRefined production 2000 1999 1998 1997 1996Platinum (000’s) (oz) 630,8 767,8 743,1 768,8 706,1Palladium (000’s) (oz) 277,3 327,0 312,4 318,6 320,7Rhodium (000’s) (oz) 43,6 46,6 50,7 49,0 50,6Gold (000’s) (oz) 39,4 50,8 45,4 43,4 36,7Nickel (000’s) (t) 7,6 8,6 9,6 8,9 9,3Copper (000’s) (t) 4,4 5,0 5,3 5,1 5,183

Review of Operations – Mining" Business Unit ReportAmandelbult SectionF A UysBUSINESS MANAGER #L D MeyerBUSINESS AREAMANAGER #D MullerHUMAN RESOURCEMANAGER #D V RaperMANAGER FINANCEAND INFORMATION #J G SchoemanBUSINESS AREAMANAGER PROCESS #J van den BergBUSINESS AREAMANAGER #J M van der RystECONOMIC RESOURCEMANAGER #N E WilliamsBUSINESS AREAMANAGER #Amandelbult SectionF A UysAll of Amandelbult’s reserves are contained withinthe current mining authorisation.MINERAL RESERVES AS AT 31 DECEMBER 2000Underground Merensky UG2Proved Tons (millions) 21,91 15,144E grade (g/t) 6,09 4,87Probable Tons (millions) 79,77 144,264E grade (g/t) 6,11 4,76Safety and healthThe surface section at Amandelbult achieved 5,91 million fatality-free shifts asat 31 December 2000.Amandelbult Section was awarded a level 4 grading during the annual auditby International Risk Control Africa (Proprietary) Limited (IRCA) in May 2000.The Section achieved two million underground fatality-free shifts on 2 March 2000,three million underground and surface fatality-free shifts on 11 April 2000 anda further one million such shifts on 31 July 2000.The metallurgical process operations achieved 9 122 fatality-free days as at31 December 2000.Despite these achievements, the mine’s fatality record deteriorated significantlyand four employees and a contractor tragically lost their lives.12LegendMerensky ReefUG2 ReefAuthorisation AreaNo. 1 ShaftNo. 2 ShaftZWARTKOP369 KQMIDDELLAAGTE382 KQ2ELANDSKUIL378 KQHAAKDOORNDRIFT374 KQ1SCHILPADNEST385 KQAMANDELBULT383 KQMODDERGAT389 KQELANDSFONTEIN386 KQ0 1 2 3 4 5kilometresAMANDELBULT SECTIONUG2 FAG mill,Amandelbult plant84

Review of Operations – Mining" Business Unit ReportAmandelbult Section (continued)SAFETYL D MeyerD MullerD V RaperJ G SchoemanJ van den BergJ M van der RystAmandelbult SectionPeriod Number Fatality Number Reportable Fall of Truck andof rate (1) of rate (1) ground tram rate (2)fatalities reportables rate (2)Year ended31 December2000 5 0,47 34 3,36 0,59 0,37Year ended31 December1999 2 0,20 31 3,13 1,01 0,60(1) Annual frequency rate per 1 000 employees at work per month.(2) Annual frequency rate per 1 000 underground employees at work per month.Safety statistics include all contractors’ safety performance.MiningRestructuring of the lower levels of management and supervision isproceeding.Amandelbult’s No. 2 shaft was commissioned in December 1998 and developmentto open up ore reserves is in progress. The 60 000 ton per month expansion onthe UG2 reef horizon was completed on time and within budget.Compared with the previous year’s statistics, the following percentage changesin efficiencies were recorded :● total primary development decreased by 5,3%● stoping square metres broken decreased by 3,28% of which 60 005 centareswas as a result of industrial action during September and October 2000● total tons milled rose by 3,1%● square metres per stoping and cleaning employee decreased owing mainlyto additional labour for expansion and as a result of the strike.MINING CAPITAL EXPENDITUREN E WilliamsTotal capital expenditure for the year amounted to R237,4 million, includingR153,7 million for the 60 000 tons per month UG2 expansion and compressorprojects. Projected ongoing expenditure for 2001 is R250,1 million.Temporary support installationin training stope86

PRODUCTION STATISTICS AND EFFICIENCY MEASURESFinancial year2000 1999 1998 1997 1996Tons broken (thousands) 6 505 6 708 6 694 6 350 5 690Tons milled (thousands) 6 412 6 222 6 169 5 852 5 252Built-up head grade (g/ton) 5,56 5,86 5,79 5,67 5,58Immediately available ore reserves (months) 19,0 21,1 19,3 19,5 18,6Metres face advance (per month) 8,9 9,4 9,7 8,8 8,2Square metres per stoping andcleaning employee (per month) 36,2 41,3 42,4 40,1 35,8Tons broken per total employee 742 811 816 768 705Average number of mine employees – excluding projects 8 614 8 036 8 031 7 907 7 854– projects 148 231 169 357 214Total average number of mine employees 8 762 8 267 8 200 8 264 8 068% UG2 mined to total output 32 29 24 22 21OPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 8 077 4 151Cash operating costs per Pt ounce refined (R) 2 252 1 859Cash operating costs per 4E kilogram refined (R) 45 354 37 780Operating income statement(R millions)Net sales revenue 4 603,0 2 518,0Operating cost of sales* (1 402,2) (1 194,0)Operating contribution 3 200,8 1 324,0Operating margin % 69,5 52,6*Cost of sales excluding other costsSALIENT STATISTICSFinancial yearRefined production 2000 1999 1998 1997 1996Platinum (000’s) (oz) 570,8 637,7 554,6 552,4 462,0Palladium (000’s) (oz) 261,1 287,5 254,0 242,5 225,5Rhodium (000’s) (oz) 57,2 58,1 59,2 51,9 48,9Gold (000’s) (oz) 22,1 25,3 20,8 18,4 14,7Nickel (000’s) (t) 4,1 4,3 4,5 4,1 3,9Copper (000’s) (t) 2,3 2,5 2,3 2,1 2,187

Review of Operations – Mining" Business Unit ReportUnion SectionC A F SweetBUSINESS MANAGER #C A F SweetC J du ToitHUMAN RESOURCEMANAGER #L MthwaBUSINESS AREAMANAGER #H J M OlwagenBUSINESS AREAMANAGER DECLINES #R E PhillipsBUSINESS AREAMANAGER PROCESS #M N RoebertBUSINESS AREAMANAGER, SPUD #J J SteynMANAGER FINANCEAND INFORMATION #Union SectionAll of Union Section’s reserves are contained withinthe current mining authorisation.MINERAL RESERVES AS AT 31 DECEMBER 2000Underground Merensky UG2Proved Tons (millions) 5,89 18,114E grade (g/t) 7,90 4,35Probable Tons (millions) 9,30 117,204E grade (g/t) 7,80 4,59Safety and healthDuring 2000 Union Section became the first winner of the new MillionaireAward bestowed by the MHSC Safety Awards Committee. The mine alsoachieved 3 million consecutive fatality-free shifts for the first time ever andthereby became the first mine in Anglo Platinum to reach this milestone. SpudShaft has now operated for more than two years without a fatality and hasachieved in excess of 1 500 000 fatality-free shifts, both first time achievementsfor the shaft. The surface section has reached six years without a fatality andMortimer Smelter has reached 1 000 days without a lost-time injury, which is anew record for the industry.However, three fatalities tragically occurred at Union Section during 2000.All mine employees have attended the on-mine industrial theatre productionon “Zero Tolerance” safety principles. An HIV/AIDS awareness programme has123LegendMerensky ReefUG2 ReefAuthorisation AreaIvan ShaftRichard Shaft22 Vertical ShaftTURFBULT404 KQ34ZWARTKLIP405 KQ214Spud ShaftHAAKDOORN6JQSPITSKOP410 KQUNION SECTION0 1 2 3 4 5kilometresSinking of new decline88

Review of Operations – Mining" Business Unit ReportUnion Section (continued)also been implemented and is supported by all on a mine-wide basis. SeniorManagement Safety Audits are regularly conducted in order to enhance safetyC J du Toitat Union Section.SAFETYPeriod Number Fatality Number Reportable Fall of Truck andof rate (1) of rate (1) ground tram rate (2)fatalities reportables rate (2)L MthwaH J M OlwagenR E PhillipsM N RoebertJ J SteynPlant maintenanceUnion SectionYear ended31 December2000 3 0,34 34 3,95 1,71 0,34Year ended31 December1999 0 0,00 37 4,32 1,91 0,00(1) Annual frequency rate per 1 000 employees at work per month.(2) Annual frequency rate per 1 000 underground employees at work per month.Safety statistics include all contractors’ safety performance.MiningUnion Section has three mining Business Areas, namely Declines, RichardShaft and Spud Shaft. The Declines section is the shallowest mining area andmines UG2 reef directly from the outcrop. A small tonnage of main reef Merenskyis mined from pillars left behind by earlier mining operations. The Richard Shaftsection mines mostly UG2 reef from longwall, downdip, and scattered operations200 metres below surface. Spud Shaft generates similar tonnages from its downdipUG2 and scattered Merensky sections.Research into and development of mining methods continues, with drill rigsbeing used in stopes and development. All three Business Areas are planningroom and pillar mechanised mining in various areas to increase efficiency andsafety by reducing the number of face workers. The room and pillar mining isplanned to clean onto strike conveyors which feed back onto a dip conveyor.The dip conveyor will be on a minor dip to accommodate the normal reef dipof approximately 18°.Intensive drill retraining is taking place to emphasise the benefits of qualitydrilling and good explosives practice. This will improve the advance per blastand efficiencies in general.Those pillars left in the Merensky areas that were not designed as stability pillarsbut are true remnants are being investigated and removed where practicalthrough direct access from the UG2 operations. This operation is closelymonitored from a safety and rock mechanics point of view.Pre-stressed support has been introduced in stoping operations to improveconditions and safety on the stope face.90

MINING CAPITAL EXPENDITUREThe total expenditure for 2000 amounted to R131,9 million, of which R40,6 million was for the Mortimer Concentrator SlagFlotation Circuit. The planned capital expenditure for 2001 is R438,9 million, of which R283,6 million is for expansion.PRODUCTION STATISTICS AND EFFICIENCY MEASURESFinancial year2000 1999 1998 1997 1996Tons broken (thousands) 3 497 3 982 4 117 4 005 3 318Tons milled (thousands) 4 159 3 749 3 725 3 624 3 176Built-up head grade (g/ton) 4,89 5,38 5,65 5,66 5,66Immediately available ore reserves (months) 13,4 14,5 14,7 17,1 18,4Metres face advance (per month) 7,0 7,4 8,5 7,7 7,3Square metres per stoping andcleaning employee (per month) 36,9 35,1 35,2 32,6 34,1Tons broken per total employee 576 677 677 641 559Average number of mine employees – excluding projects 6 071 5 878 6 078 6 244 5 931– projects — — — — —Total average number of mine employees 6 071 5 878 6 078 6 244 5 931% UG2 mined to total output 69 75 58 58 55OPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 8 503 4 320Cash operating costs per Pt ounce refined (R) 3 182 2 562Cash operating costs per 4E kilogram refined (R) 62 341 50 623Operating income statement(R millions)Net sales revenue 2 491,5 1 383,6Operating cost of sales* (957,4) (840,3)Operating contribution 1 534,1 543,3Operating margin % 61,6 39,3*Cost of sales excluding other costsSALIENT STATISTICSFinancial yearRefined production 2000 1999 1998 1997 1996Platinum (000’s) (oz) 288,8 333,1 309,2 321,5 267,9Palladium (000’s) (oz) 137,7 155,7 144,7 137,8 128,9Rhodium (000’s) (oz) 42,1 47,4 49,1 42,8 42,1Gold (000’s) (oz) 5,3 5,8 5,5 5,7 4,6Nickel (000’s) (t) 1,4 1,5 1,7 1,4 1,3Copper (000’s) (t) 0,7 0,6 0,7 0,6 0,691

D W PelserBUSINESS MANAGER #B H DavisBUSINESS AREAMANAGER PROCESS #G J McCarthyBUSINESS AREAMANAGER MINING #R SchoemanHUMAN RESOURCEMANAGER #J C WhitmoreMANAGER FINANCEAND INFORMATION #Potgietersrust PlatinumsPotgietersrustReview of Operations – Mining" Business Unit ReportPlatinums (PPRust)D W PelserAll of the mineral resources are based on the inclusion of“fresh” ore above a 1,7 grams per ton cut-off grade.MINERAL RESERVES AS AT 31 DECEMBER 2000UndergroundPlatreefProved Tons (millions) 38,384E grade (g/t) 4,26Probable Tons (millions) 296,504E grade (g/t) 3,79MINERAL RESOURCES AS AT 31 DECEMBER 2000Indicated Tons (millions) 166,504E grade (g/t) 4,90Safety and healthPPRust has made significant improvements in all areas of Safety and Health duringthe past year as a result of the concerted efforts of all employeesBy implementing “Zero Tolerance” through the “Unembeza” campaign, the Companyimplemented a set of negotiated codes of practice, such as the “Alcohol andCannabis testing” code of practice. These will ensure that the basic and immediatecauses of accidents are identified and facilitate their prevention in future.The “Zero Tolerance” principles were reinforced by:● The installation of a closed circuit TV information network throughout PPRust’soperations.● Blue Moon Production’s industrial theatre presentation dealing with HIV/AIDSand drug and alcohol abuse.These initiatives not only contributed to the improvement in safety, but also to thegoal of improving the general health of employees. The communication mediaused have led to a much better understanding of the effects of HIV/AIDS, and ofdrug and alcohol abuse, on both employees’ health and on business performance.123456L e g e n dAuthorisation AreaOverysel Central *Zwartfontein North *Zwartfontein South *Sandsloot PitTweefontein North *Tweefontein Hill ** Future PitsOVERYSEL815 LR1ZWARTFONTEIN2 818 LR3VAALKOP819 LR45TWEEFONTEIN238 KR0 1 2 3 4 5kilometresPOTGIETERSRUST PLATINUMSSANDSLOOT236 KRKNAPDAAR234 KRRIETFONTEIN240 KR6Loading ore in South Pit92

B H DavisG J McCarthyR SchoemanJ C WhitmorePotgietersrust PlatinumsReview of Operations – Mining" Business Unit ReportPotgietersrust Platinums (continued)An audit by IRCA of PPRust’s Safety, Health and Environmental Managementsystems recorded an improvement of 20% on the previous year’s performance.Serious injuries for the year were 2 compared with 7 during 1999; 356 159 fatalityfreeshifts have been achieved since the occurrence of the first ever fatality on6 December 1999; and the open pit has to date had no fatal injuries and achieved1 580 135 fatality-free shifts by December 2000.Major improvements have been made in measuring, monitoring and controllingOccupational Health performance. The nearly completed Occupational Healthcentre will lead to improved control over the exit medical examinations of allemployees and contractors.Development and research is being undertaken on “Man-Job Specification”, basedon Critical Task Analyses, with a view to ensuring that employees are placed inpositions suited to their physical and mental capabilities.The entire workforce has now been issued with personalised Variphone hearingprotection units. In addition, the induction-training programme for employees andcontractors is being transformed by means of a personalised company inductionvideo aimed at visually demonstrating the Safety and Health requirementspertaining to the individual plant and mining sections.Safety and Health initiatives are founded on mutual trust, participation andconsultation among all concerned stakeholders.SAFETYPeriod Number of Fatality Number of Reportablefatalities rate (1) reportables rate (1)Year ended31 December2000 0 0,00 2 1,65Year ended31 December1999 1 0,63 7 4,47(1) Annual frequency rate per 1 000 employees at work per month.Safety statistics include all contractors’ safety performance.MiningPPRust is the only Anglo Platinum mine operating on the Platreef horizon of theBushveld Complex.During the course of the 1999 financial year, the expanded concentratordemonstrated a proven throughput of 360 000 tons per month and concerns wereraised pertaining to the lack of crushing capacity and water shortages.Over the past year, the proven plant throughput has been increased to 390 000 tons permonth with facilities for a sustainable 370 000 tons per month water supply havingbeen completed and commissioned ahead of schedule and below budget. As a resultof good rains, excess surface water in the area has made additional water available tothe operation in the short to medium term. This has been utilised in the interimwhile work is well under way to secure significant additional sustainable watersources for both the current and possible future operations in the area.The processing operation performed above expectations with the new “Batchmilling” process paying off in terms of both throughput and recovery. The case forinstalling additional crushing capacity is still under review in the light of thesustainable water supply at this point.MINING CAPITAL EXPENDITURECapital expenditure for 2000 was R57,8 million.The total projected expenditure for 2001 is R272,1 million, comprising expansionexpenditure of R60,9 million and ongoing expenditure of R211,2 million. Major itemsin 2001 are R20,0 million for a new tailings dam, R38,3 million for plantoptimisation and R70,0 million for additional water supply.94

Ga-Pila villageNegotiations on the resettlement of the Ga-Pila village, from its current location adjacent and to the west of the PPRustSandsloot open pit to a new location on the nearby Sterkwater farm, have led to the conclusion of a construction contractand the commencement of the construction of a new village at Sterkwater.The new village, which entails the construction of some 770 houses with water and electrical infrastructure, a road network,schools and shops, will be the future home for about 4 500 people. Construction is expected to take about one year.The project, which exemplifies Anglo Platinum’s sensitivity to the needs of local communities, will cost in excess ofR135 million.PRODUCTION STATISTICS AND EFFICIENCY MEASURESFinancial year2000 1999 1998 1997 1996Tons mined (thousands) 30 183 34 730 30 903 32 983 24 766Tons milled (thousands) 4 177 4 059 3 182 2 969 3 025Built-up head grade (g/ton) 4,33 4,59 4,80 4,40 4,29Stripping ratio 8,70 7,86 5,49 6,96 3,84Immediately available ore reserveswithin the pit (months) 6,7* 1,3* 2,7* 13,2 9,2Tons mined per total employee 25 753 29 583 28 935 32 656 29 839Tons milled per total employee 3 564 3 457 2 979 2 940 3 645Average number of mine employees – excluding projects 1 172 1 044 543 624 830– projects — 130 525 386 —Total average number of mine employees 1 172 1 174 1 068 1 010 830*Method of reporting ore reserves changedOPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 10 745 5 627Cash operating costs per Pt ounce refined (R) 3 654 3 228Cash operating costs per 4E kilogram refined (R) 52 874 46 802Operating income statement(R millions)Net sales revenue 2 085,7 1 131,5Operating cost of sales* (767,6) (717,3)Operating contribution 1 318,1 414,2Operating margin % 63,2 36,6*Cost of sales excluding other costsSALIENT STATISTICSFinancial yearRefined production 2000 1999 1998 1997 1996Platinum (000’s) (oz) 194,1 201,1 170,1 151,6 141,5Palladium (000’s) (oz) 203,7 210,2 182,8 161,6 145,5Rhodium (000’s) (oz) 13,9 14,9 12,6 10,6 9,1Gold (000’s) (oz) 19,6 19,7 17,3 16,9 16,0Nickel (000’s) (t) 4,4 3,9 3,6 5,3 5,7Copper (000’s) (t) 2,3 1,9 1,9 3,0 3,495

T S O’ConnorBUSINESS MANAGER #D A EvertCENTRAL LOGISTICSMANAGER #J J la GrangePLANT MANAGER #J W SteenkampMANAGER FINANCEAND INFORMATION #H C van VuurenBUSINESS AREAMANAGER #Lebowa Platinum MinesReview of Operations – Mining" Business Unit ReportLebowa Platinum Mines (Leplats)T S O’ConnorAll of the reserves are contained within the currentmining authorisation.MINERAL RESERVES AS AT 31 DECEMBER 2000Underground Merensky UG2Proved Tons (millions) 4,38 5,614E grade (g/t) 4,50 5,00Probable Tons (millions) 133,90 270,004E grade (g/t) 4,50 5,00Safety and healthThe surface section at Leplats has maintained its fatality-free record for morethan 11 years.Regrettably, two tragic fatalities occurred during the year in the undergroundsections. A proactive approach to safety has been adopted in the form of the“Zero Tolerance” campaign and the international Common Audit Process (CAP)was extended to include all thirteen elements of the CAP programme.These safety initiatives had an immediate impact on safety performance andboth serious (reportable) injury and lost-time injury rates have reduced.Furthermore, the Merensky Section achieved one million fatality-free shifts inthe falls of ground category during the year.LegendMerensky ReefMiddelpunt Hill1234UG2 ReefAuthorisation AreaVertical ShaftMiddelpunt AditsUM 1 InclineUM 2 InclineZEEKOEGAT421 KSDIAMAND422 KS1234MIDDELPUNT420 KSUMKOEANESTAD419 KSBRAKFONTEIN464 KSLEBOWA PLATINUM MINES0 1 2 3 4 5kilometresMerensky primary mill96

Review of Operations – Mining" Business Unit ReportLebowa Platinum Mines (continued)D A EvertJ J la GrangeJ W SteenkampH C van VuurenLebowa Platinum MinesSAFETYPeriod Number Fatality Number Reportable Fall of Truck andof rate (1) of rate (1) ground tram rate (2)fatalities reportables rate (2)Year ended31 December2000 2 0,81 7 2,85 0,49 0,40Year ended31 December1999 2 0,86 10 4,32 1,08 0,43(1) Annual frequency rate per 1 000 employees at work per month.(2) Annual frequency rate per 1 000 underground employees at work per month.Safety statistics include all contractors’ safety performance.MiningContinued emphasis has been placed on improving “Mining Optimisation”, abaseline assessment of current practices which highlighted areas of underperformance.Strategies have been developed to ensure improvements infrequency of blasting and advance per blast.The Middelpunt Hill capital development moved from a project phase into aproduction phase with the commissioning of the 50 000 tons per monthconcentrator plant. Current mining of the UG2 ore from three adits inMiddelpunt Hill is being done in a highly mechanised environment withsuperior efficiencies being attained.MINING CAPITAL EXPENDITURECapital expenditure for 2000 was R103,0 million. A total of R83,1 million wasexpended on the Middelpunt Hill expansion project.The total projected expenditure for 2001 is R125,0 million, includingR40,0 million for a Merensky decline section to replace existing Merenskyoutput and R10,9 million for additional housing.Stope drill rig98

PRODUCTION STATISTICS AND EFFICIENCY MEASURESFinancial year2000 1999 1998 1997 1996Tons broken (thousands) 1 267 1 297 1 057 988 938Tons milled (thousands) 1 079 1 021 932 900 869Built-up head grade (g/ton) 4,26 4,56 4,71 4,78 5,00Immediately available ore reserves (months) 24,1 15,2 15,9 17,0 17,3Metres face advance (per month) 9,0 9,0 10,0 8,1 7,3Square metres per stoping andcleaning employee (per month) 35,0 38,4 30,4 26,7 28,4Tons broken per total employee 569 628 484 464 452Average number of mine employees – excluding projects 2 219 2 062 2 183 2 131 2 076– projects 8 4 — — —Total average number of mine employees 2 227 2 066 2 183 2 131 2 076% UG2 mined to total output 18 — — — —OPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 7 593 4 312Cash operating costs per Pt ounce refined (R) 4 179 3 475Cash operating costs per 4E kilogram refined (R) 83 047 71 221Operating income statement(R millions)Net sales revenue 548,2 339,8Operating cost of sales* (305,7) (278,9)Operating contribution 242,5 60,9Operating margin % 44,2 17,9*Cost of sales excluding other costsSALIENT STATISTICSFinancial yearRefined production 2000 1999 1998 1997 1996Platinum (000’s) (oz) 72,2 78,8 84,0 76,8 79,1Palladium (000’s) (oz) 35,7 35,2 37,0 32,8 33,9Rhodium (000’s) (oz) 4,4 4,5 5,1 4,6 4,7Gold (000’s) (oz) 4,5 5,1 5,0 4,8 5,5Nickel (000’s) (t) 1,1 1,3 1,2 1,1 1,2Copper (000’s) (t) 0,6 0,7 0,7 0,6 0,799

Review of Operations – Mining" Business Unit ReportBafokeng-Rasimone Platinum Mine (BRPM)C I GriffithBUSINESS MANAGER #V G HarrisBUSINESS AREAMANAGER MINING #K A JoslinECONOMIC RESOURCEMANAGER #C KernHUMAN RESOURCEMANAGER #W J MaraisBUSINESS AREAMANAGER PROCESS #A M McCarthyMANAGER FINANCEAND INFORMATION #Bafokeng-RasimoneAll of the reserves of BRPM are contained within thecurrent mining authorisation.MINERAL RESERVES AS AT 31 DECEMBER 2000Underground Merensky UG2Proved Tons (millions) 0,63 —4E grade (g/t) 5,38 —Probable Tons (millions) 47,60 77,564E grade (g/t) 5,84 3,70Open pitC I GriffithProbable Tons (millions) 0,99 —4E grade (g/t) 4,72 —Safety and healthTwo tragic fatalities occurred in 2000 despite the numerous safety initiativesthat have been and are being pursued in compliance with Anglo Platinum’srigorous policy on safety and health. In September 2000, International RiskControl Africa (Proprietary) Limited (IRCA) conducted an audit to assessprogress made on the implementation of the Common Audit Process (CAP)and the Safety, Health, Environment and Quality (SHEQ) guidelines. Resultsachieved continue to show pleasing improvements. Focused attentioncontinues to be given to the development of standards and procedures.Dedicated on-mine training facilities are being established in line with thelabour build-up and to provide for future training requirements.LegendMerensky Reef12UG2 ReefAuthorisation AreaMineral lease in favourof ImpalaNorth Conveyor InclineNorth Material Incline12fBOSCHKOPPIE104 JQf3South Conveyor Incline4South Material InclineFault30 1 2 34kilometresBAFOKENG-RASIMONEPLATINUM MINEUnderground installationof timber support100

101

Review of Operations – Mining" Business Unit ReportBafokeng-Rasimone Platinum Mine (continued)V G HarrisK A JoslinC KernW J MaraisA M McCarthyBafokeng-RasimoneThe mine remains committed to Anglo Platinum’s Environmental Policy andduring the course of 2000 received the coveted Excellence in MiningEnvironmental Management (EMEM) award for the North West region.On World AIDS Day, BRPM conducted voluntary, anonymous, unlinkedHIV/AIDS prevalence testing on its workforce.SAFETYPeriod Number Fatality Number Reportable Fall of Truck andof rate (1) of rate (1) ground tram rate (2)fatalities reportables rate (2)Year ended31 December2000 2 0,70 16 5,63 0,46 0,70Year ended31 December1999 2 0,99 16 7,95 2,41 0,49(1) Annual frequency rate per 1 000 employees at work per month.(2) Annual frequency rate per 1 000 underground employees at work per month.Safety statistics include all contractors’ safety performance.MiningThe mine consists of two shaft systems, referred to as the North and Southshafts. Each complex has two incline shafts, one equipped with a conveyor beltfor transport of both men and rock and the other being a trackbound materialshaft. A small trackless section on the Southern boundary of the property willbe established during 2001.The sinking of the inclines at North shaft is complete with the conveyordecline having reached 1 477 metres and the material decline 1 209 metres.The material decline at South shaft is complete with a final length of 1 433 metresand the conveyor decline is 30 metres short of the final length of 1 506 metres.Construction in both North and South shafts is scheduled for completion in thesecond half of 2001.The concentrator was commissioned in December 1999 and concentratorrecoveries continue to exceed expectations. Plant throughput, however, did notreach desired levels owing to delays in the production build-up.The delay in the production build-up was due to various factors: floodingconsequent upon the heavy rainfalls early in 2000; a substantial reduction inopencast reserves as a result of an unforeseen increase in the average dip of theMerensky outcrop; and difficulties encountered in recruiting of competent andliterate employees for the underground operations. Underground stopingoperations commenced in March 2000 and continue to expand at this time.Despite the delays the mine is still on schedule to reach 200 000 tons permonth from underground in 2002. The addition of the trackless section willallow an increase in the designed production levels to 220 000 tons per monthduring 2002.Award of excellence in mining-environmentmanagementOpencast mining of the Merensky Reef continues to augment undergroundproduction, but production levels will fall as the reserves near depletion102

towards the middle of 2001. An opencast operation on the UG2 Reef commenced in July 2000 and is planned to produceat 40 000 tons per month, depleting towards the end of 2001.MINING CAPITAL EXPENDITURECapital expenditure for 2000 was R372,8 million. The total capital expenditure projected for 2001 is R366,0 million, ofwhich R191,8 million is for expansion and R174,2 million is for a trackless mining section, a housing project andongoing development.PRODUCTION STATISTICS AND EFFICIENCY MEASURESFinancial year2000 1999Tons broken (thousands) 610 —Tons milled (thousands) 1 533 101Built-up head grade (g/ton) 4,61 —Immediately available ore reserves (months) 3,0 —Metres face advance (per month) 5,4 —Square metres per stoping and cleaning employee (per month) 15,4 —Tons broken per total employee 426 —Average number of mine employees – excluding projects — —– projects 1 433 178Total average number of mine employees 1 433 178% UG2 mined to total output 9 —OPERATING PERFORMANCEFinancial year2000 1999Profitability and cost statisticsNet sales revenue per Pt ounce sold (R) 6 533 4 359Cash operating costs per Pt ounce refined (R) 3 458 3 643Cash operating costs per 4E kilogram refined (R) 81 442 79 340Operating income statement(R millions)Net sales revenue 748,0 17,0Operating cost of sales* (374,0) (12,7)Operating contribution 374,0 4,3Operating margin % 50,0 25,3*Cost of sales excluding other costsSALIENT STATISTICSFinancial yearRefined production 2000 1999Platinum (000’s) (oz) 115,0 4,2Palladium (000’s) (oz) 31,1 1,6Rhodium (000’s) (oz) 3,9 0,2Gold (000’s) (oz) 7,0 0,2Nickel (000’s) (t) 0,6 0,0Copper (000’s) (t) 0,5 0,0103

Review of Operations – Process" Business Unit ReportWaterval SmelterJ BreytenbachMANAGER FINANCEAND INFORMATION #P P MukumbePRODUCTIONMANAGER #L PretoriusENGINEERINGMANAGER #J W VenterMETALLURGICALMANAGER #K P J VenterHUMAN RESOURCEMANAGER #Waterval SmelterSAFETYT N HolohanBUSINESSMANAGER #Safety and healthWaterval Smelter continued during 2000 with theagreed “Zero Tolerance” campaign. Safety remained atop priority and, despite an increase in the number ofcontractors because of the construction of the additionalFlash Drier and Storage Silo, no major safety incidentoccurred.Period Number of Fatality Number of Reportablefatalities rate (1) reportables rate (1)Year ended 31 December 2000 0 0,00 5 4,80Year ended 31 December 1999 1 0,96 3 2,86(1) Annual frequency rate per 1 000 employees at work per month.Safety statistics include all contractors’ safety performance.SmeltingWaterval Smelter receives concentrate from the mining operations and furnacematte from the Union Smelter. These feed products are treated to produce aconverter matte which is amenable to further processing at RBMR.Construction of an additional Flash Drier and Dry Concentrate Storage Silowas completed during August 2000. Successful commissioning of these unitshas greatly improved smelting operations.Production and costsAs a result of furnace run-outs and major ceramic candle failures, throughputand recoveries were adversely affected. Numerous technical problems associatedwith the ceramic filters have been identified and improvements to the systemhave been successfully implemented. Provision has also been made to conductthe necessary work to improve furnace integrity.Despite these problems, Waterval Smelter maintained stocks at 1999 closinglevels and contained unit cost increases to within plan.Construction of the new Converting Process and Acid Plant has commencedand commissioning of phase 1 is scheduled for 2002.PRODUCTION STATISTICSFinancial year2000 1999 1998 1997 1996Waterval converter matteproduced (000’s) (t) 40,2 44,7 43,6 48,1 46,6Capital expenditureWaterval SmelterCapital expenditure for 2000 was R478,2 million, of which R466,2 million wasfor expansion and included R397,3 million for the Anglo Platinum ConvertingProcess project. R65,7 million was for the additional Flash Drier and the DryConcentrate Storage Silo. Projected expenditure for 2001 is R1 035,4 million, ofwhich R975,6 million is for the Converting Process project.Matte tapping at No. 1 furnace104

105

R P BuitendagENGINEERINGMANAGER #A W LaubscherBUSINESS AREAMANAGER #A LotzMC PLANT MANAGER #P A B NieuwoudtHUMAN RESOURCEMANAGER #A NiezenMANAGER FINANCEAND INFORMATION #Rustenburg Base MetalsReview of Operations – Process" Business Unit ReportRustenburg Base Metals Refiners (RBMR)Safety and healthAt the end of April 2000, RBMR had worked 3 145 400 manhours without a lost-time injury. During May 2000, thefirst lost-time injury in 13 months occurred. Seven otherlost-time injuries followed during the year. In November2000, Marsh conducted an audit and RBMR achieved89% for systems and field verification. This is equivalent toan IRCA Level 4 rating.During the year, Issue-Based Risk Assessments wereA N Jonesperformed and are now linked to the Task Inventory.BUSINESS This will ensure that more task-orientated safety trainingMANAGER # can be developed and presented during 2001.The Occupational Hygiene Risk Assessment programme is well on schedule andwill be used in conjunction with the Issue-Based Risk Assessment to determine allrisks and to implement control measures.SAFETYPeriod Number of Fatality Number of Reportablefatalities rate (1) reportables rate (1)Year ended 31 December 2000 0 0,00 5 4,37Year ended 31 December 1999 0 0,00 5 3,87(1) Annual frequency rate per 1 000 employees at work per month.Safety statistics include all contractors’ safety performance.Base Metal RefiningThe Rustenburg Base Metals Refiners (RBMR) treats Waterval Converter Matte toproduce quality base metal products and a precious metal concentrate for furthertreatment at Precious Metal Refiners (PMR).The application of the SAP/R3 management system continued during 2000. As aresult management has been able to achieve increased control of expenditure withfurther exploitation of the system planned for the coming year.RBMR operated smoothly during the year and equipment availability was high.Security measures continue to be upgraded in the Magnetic Concentration (MC)plant. Certain process equipment in the plant has also been upgraded in anticipationof higher throughputs.Production and costsTotal base metal output from RBMR marginally decreased year on year by 2,6%.Working costs increased by 6,2%. There was a significant improvement in thecontrol of these costs.Financial yearItem 2000 1999 1998 1997Base metals produced (t) 29 151 29 921 30 901 30 948Total site cost increase % 6,17 13,8 11,9 17,1Unit cost % increase 9,3 18,9 12,0 18,2Capital expenditureThickener with rehabilitated waste dumpCapital expenditure for 2000 was R49,5 million, of which R32,5 million was forrenewals and replacements.Total projected expenditure for 2001 is R220,9 million, of which R126,4 million isexpansion expenditure for the removal of bottlenecks and capacity upgrades.Maintenance procedure106

107

B G ForbesENGINEERINGMANAGER #G P HayesPRODUCTIONMANAGER #Dr S E MillerMANAGER STRATEGYAND TECHNICALDEVELOPMENT #L StanderHUMAN RESOURCEMANAGER #Precious Metals RefinersReview of Operations – Process" Business Unit ReportPrecious Metals Refiners (PMR)Safety and healthPrecious Metals Refiners (PMR) has continued todemonstrate its commitment to good safety andhealth management by maintaining a creditablesafety and health performance and by preserving itsfatality-free record. PMR has maintained its NOSA(National Occupational Safety Association) 5-starrating for the ninth year and was awarded theD E Spannprestigious, internationally recognised NOSCAR safetyBUSINESSMANAGER # award for the fifth consecutive year.The “Zero Tolerance” drive towards safety and healthis ongoing and is supported by monthly poster and photo campaigns.SAFETYPeriod Number of Fatality Number of Reportablefatalities rate (1) reportables rate (1)Year ended 31 December 2000 0 0,00 2 2,59Year ended 31 December 1999 0 0,00 4 4,54(1) Annual frequency rate per 1 000 employees at work per month.Safety statistics include all contractors’ safety performance.Precious Metal RefiningPMR, located at Rustenburg, remains the world leader in the field of preciousmetals refining. Refining services are provided for all of the Anglo PlatinumGroup mines.Final concentrate from the Magnetic Concentrate Plant, located at RBMR, andmetallic concentrate received direct from some of the mine concentrators arerefined to a high degree of purity into the six platinum group metals and gold.The new “high intensity dissolver”, which was successfully installed andcommissioned during the year, has further improved recoveries, reduced workin progress and enhanced final product purities.Production and costProduction of all metals during 2000 was lower than in 1999. The decline wasdue to lower inputs, mainly owing to upstream production problems causedby high rainfall and to industrial action on the mining operations.The refinery continues to perform well and improvements in efficiencies andpurities have been achieved. Numerous interventions have been commissionedto further enhance the technical and business performance of the operation andplans are in place to expand the refining capacity of the Group to meet itsexpansion strategy.Capital expenditureAnalysing high-grade platinum liquorsat PMR LaboratoryThe total capital expenditure for 2000 was R11,5 million. The total projectedexpenditure for 2001 is R307,9 million. Expansion expenditure accounts forR211,0 million, including provision for the removal of bottlenecks, capacityupgrading and new technology.High intensity dissolving reactor108

109

Corporate" Finance Review . . .Financial strategyThe Group’s revenues are exposed to volatility in US dollar commodity pricesand rand/US dollar exchange rates. Accordingly, the Group’s strategy is tomaintain a strong balance sheet so that it can meet working capital requirementsand provide internal funding for ongoing and expansion capital projects.Owing to its low gearing, the Group has substantial debt capacity which itwill utilise where circumstances are such that the obligations are matched tospecific requirements in an appropriate manner without creating undue risk.Finance ReviewIt is the Group’s policy to declare dividends twice a year. The dividend isdetermined after due consideration of current earnings, immediate and longtermprospects, capital commitments and cash flow requirements associatedwith opportunities for growth.Investments, which are evaluated by means of long-term pricing models, aretargeted to yield at least a specified after-tax real return per annum (currently12%) over the economic life of the investment.To facilitate a better understanding of the Group by both local and internationalinvestors, the financial statements have been prepared in compliance with thestandards required by the International Accounting Standards Committee.Key indicators are:Financial year2000 1999Cash and cash equivalents (Rm) 6 122,8 2 214,5Return on average shareholders’ equity % 73,2 40,9Operating profit to average operating assets % 117,6 49,1Debt to equity ratio 1:346 1:152Dividend cover 1,3 1,7Compound growth % %From 1995:Headline earnings per share 58,8 40,0Dividends per share 61,1 33,3Total assets 41,1 35,9Cash and cash equivalents 65,0 45,0Gross sales revenue 34,7 24,6TreasuryTreasury has the ongoing task of ensuring that the Group focuses on timeousidentification, measurement and valuation of market and operational riskswithin Treasury’s area of responsibility. The scope of this function has beenenhanced in view of the current methodologies being applied in the industry.Market and credit risks, being the main risks managed within Treasury, are thesubject of renewed focus.Treasury provides analyses of market trends and makes strategic recommendationsto the Risk Committee, which in turn submits recommendations to the ExecutiveCommittee.Treasury manages the Group’s banking relationships, which are developed andmaintained with highly rated financial institutions.110

Information technologyThe Group continues to make innovative use of information technology (IT), and thevarious initiatives under way are fully aligned with the Group’s various businessstrategies and objectives.The IT functions continue to be outsourced to some of the strongest IT service providersin South Africa. This selective outsource model has proved to be advantageous asregards managing outsource arrangements and the benefits of this approach are beingseen in the improved service being offered to the various Business Units.The mining industry has embarked on an exciting eBusiness initiative with the jointlaunch by 22 mining enterprises of an electronic Marketplace (Quadrem),www.Quadrem.com, which will enable the participants to optimise their procurementpractices. Anglo Platinum has been in the forefront of this exercise and has played anactive role in developing Quadrem’s strategy by seconding staff to Quadrem. TheGroup has also hosted the initial pilot projects on behalf of Quadrem and the AngloAmerican plc group, with the active participation of seconded staff from AngloAmerican companies from around the world. It expects to implement these revisedbusiness methods within the coming year and to obtain significant benefit from theseand other eBusiness initiatives.The Project Gateway initiative to implement the Systems Applications Product(Revision 3) integrated management information system (SAP R/3) across the Grouphas been completed on time. The year was a momentous one for SAP/R3 as some tensignificant implementations were completed during this period. Full implementation ofthe commercial, financial and logistical modules was undertaken at Amandelbult,Union, PPRust, Leplats and BRPM. Financial procedures are now substantiallystreamlined and the financial management teams have been quick to exploit theopportunities offered by the SAP system.111

C o r p o r a t e" Finance Review . . . (continued)The payroll system was implemented at Amandelbult, Union, PPRust, Leplatsand BRPM. This was a major undertaking that involved negotiations with tradeunions as to the way employees are paid.Finance ReviewThe new architecture for supporting technical mining systems requirementscontinues to be deployed with a new Mine Design and Scheduling systemintegrated into the existing Minerals Resource Management system that wasinstalled at all underground mines within the Group during the past year. Thissystem has provided a substantial baseline platform that allows the Group togenerate computerised five-year plans and also enables disciplines such asgeology, rock engineering and ventilation to interact and collaborate using thesame plans from a central database.The Management Information System (MIS), based on state-of-the-art technology,continues to expand and plays an essential role in consolidating and reportinginformation across the SAP/R3 systems and the technical mining systems andthus serves the critical role of integrating financial and production information.The Group has continued over the past year with the development of itsnetwork infrastructure and has completed further major network upgrades,which included extending the radio networks at all sites in order to expandbandwidth and to overcome the countrywide problem of cable theft. Theinstallation of a videoconference system has resulted in improved and moreeconomical communication with the Group’s more remote mine sites.Computer security has been considerably strengthened by implementingcontrols so as to reduce any threat of external hacking attacks. The Group’ssophisticated network management system continues to be enhanced tofacilitate the monitoring, control and administration from a centralised controlcentre of desktop computers, servers, network equipment and computer roomenvironments spread across the operating sites.Salient statisticsFinancial yearAverage prices achieved 2000 1999 1998 1997 1996Platinum (US$/oz) 544 377 373 397 398Palladium (US$/oz) 675 358 282 180 129Rhodium (US$/oz) 1 847 894 609 291 294Nickel (US$/lb) 3,86 2,58 2,13 3,05 3,47Average Pt R/US$ exchangerate achieved 6,9977 6,1483 5,5835 4,6393 4,2906Platinum (R/oz) 3 804 2 317 2 083 1 841 1 707Palladium (R/oz) 4 739 2 206 1 595 837 549Rhodium (R/oz) 12 864 5 553 3 453 1 357 1 251Nickel (R/lb) 26,63 15,82 11,68 13,95 14,61Refined productionPlatinum (000’s) (oz) 1 871,7 2 022,7 1 861,0 1 871,1 1 656,6Palladium (000’s) (oz) 946,6 1 017,2 930,9 893,3 854,5Rhodium (000’s) (oz) 165,1 171,7 176,7 158,9 155,4Gold (000’s) (oz) 97,9 106,9 94,0 89,2 77,5Nickel (000’s) (t) 19,2 19,6 20,6 20,8 21,4Copper (000’s) (t) 10,8 10,7 10,9 11,4 11,9112

" Glossary of Terms: Finance . . .AVERAGE OPERATING ASSETSAverage of the aggregate of total assets less capital work-in-progress,cash and cash equivalents, Platinum Producers’ Environmental Trust andinvestments at beginning and end of the financial year.AVERAGE ORDINARYSHAREHOLDERS’ EQUITYAverage of the aggregate of share capital, share premium, non-distributablereserves and accumulated profits at the beginning and end of thefinancial year.CAPITAL EXPENDITURETotal capital expenditure on mining and non-mining property, plant andequipment and capital work-in-progress.CURRENT ASSETSInventories, accounts receivable and cash and cash equivalents.CURRENT LIABILITIESAccounts payable and taxation.CURRENT RATIOCurrent assets as a ratio of current liabilities.DEBT EQUITY RATIOInterest-bearing borrowings including the short-term portion payable asa ratio of shareholders’ equity.EFFECTIVE TAX RATECurrent taxation, deferred tax and tax normalisation as a percentage ofprofit before taxation.GROSS PROFIT MARGINGross profit on metal sales expressed as a percentage of gross sales revenue.MARKET CAPITALISATIONNumber of ordinary shares in issue at 31 December multiplied by theclosing share price as quoted on the JSE Securities Exchange South Africa.NET ASSET VALUETotal assets less all liabilities including deferred taxation which equatesto shareholders’ equity.NET ASSET VALUE AS A %OF MARKET CAPITALISATIONShareholders’ equity expressed as a percentage of market capitalisation atclose of business on 31 December.NET LIQUID ASSETSAccounts receivable and cash and cash equivalents less current liabilities.OPERATING PROFIT AS A % OFAVERAGE OPERATING ASSETSHeadline earnings excluding net investment income as a ratio of averageoperating assets.RAND REVENUE PERNet sales revenue divided by platinum ounces sold.PLATINUM OUNCE SOLDREFINED OUNCESRefined metal available for sale.RETURN ON AVERAGESHAREHOLDERS’ EQUITYNet profit attributable to average ordinary shareholders expressed as apercentage of the average ordinary shareholders’ equity.TOTAL ASSETSNon-current and current assets.113

Corporate" Finance Review (continued)Ten Year ReviewDecember December December DecemberR million 2000 1999 1998 1997Gross sales revenue 16 185,6 8 794,9 6 855,2 5 313,0Commissions paid 648,6 276,9 232,3 154,8Net sales revenue 15 537,0 8 518,0 6 622,9 5 158,2Cost of sales 6 675,8 5 338,7 4 815,8 4 311,0Cash operating costs 5 871,4 5 056,3 4 538,1 4 032,3On-mine costs 4 934,6 4 187,5 3 787,0 3 267,1Smelting costs 336,9 330,7 264,7 269,6Treatment and refining costs 599,9 538,1 486,4 495,6Amortisation of operating assets 395,8 304,5 256,5 208,5(Increase)/decrease in metal inventories (100,0) (239,7) (236,3) 125,4Transfer (from)/to metal lease liability — (64,4) 29,1 (226,8)Other costs 508,6 282,0 228,4 171,6Gross profit on metal sales 8 861,2 3 179,3 1 807,1 847,2Other net income 593,5 56,0 159,4 23,0Net profit on disposal of mineral rights and investments 122,7Market development and promotional expenditure (180,2) (139,1) (120,7) (118,6)Operating profit 9 397,2 3 096,2 1 845,8 751,6Net investment income 295,6 120,6 220,8 231,7Income from associate 157,6Profit before taxation 9 850,4 3 216,8 2 066,6 983,3Renewals and replacementsCurrent taxation 2 319,3 566,8 470,0 158,9Deferred taxation/Tax normalisation 613,1 45,5 176,6 108,5Profit attributable to ordinary shareholders 6 918,0 2 604,5 1 420,0 715,9Dividends and capitalisation share awards 2 457,4 1 013,3 654,7 356,0Cash flows from operating activities 7 948,8 2 972,6 1 438,6 849,0Cash flows from/(used in) investing activities (1 626,7) (1 302,1) (1 186,1) 848,0Cash flows used in financing activities (2 413,8) (985,5) (639,0) (940,2)Cash and cash equivalents 6 122,8 2 214,5 1 529,5 1 916,0Capital expenditure 1 919,7 1 472,9 1 460,0 641,3Metal inventories 1 142,1 1 042,1 802,4 566,1Net liquid assets 4 770,4 1 667,9 1 283,8 1 691,7Shareholders’ equity 11 714,1 7 196,3 5 551,9 4 752,7Ratio analysisReturn on average equity % (headline earnings) 73,2 40,9 27,6 18,7Net asset value as a % of market capitalisation 15,3 17,8 32,0 34,1Gross profit margin % 54,7 36,1 26,4 15,9Operating profit as a percentage of average operating assets 117,6 49,1 35,4 21,0Effective tax rate % 29,8 19,0 31,3 27,2Debt equity ratio 1:346 1:152 1:76 1:67Current ratio 3,0:1 3,2:1 3,9:1 3,9:1Rand revenue per platinum ounce 8 287,3 4 365,7 3 602,5 3 003,0Share performanceNumber of ordinary shares in issue (millions) 217,0 216,1 215,1 214,6Weighted average number of ordinary shares in issue (millions) 216,3 215,5 214,5 214,1Headline earnings per share (cents) 3 141,6 1 208,6 662,0 334,1Dividends per share (cents) 2 410,0 700,0 385,0 250,4Interim 710,0 275,0 190,0 135,4Final 1 100,0 425,0 195,0 115,0Special 600,0Market capitalisation (R millions) 76 384,0 40 410,7 17 358,6 13 949,0Number of ordinary shares traded (millions) 67,8 71,1 39,5 41,3Highest price traded (cents) 37 000,0 19 560,0 9 600,0 8 800,0Lowest price traded (cents) 17 400,0 7 650,0 4 950,0 5 600,0Closing price (cents) 35 200,0 18 700,0 8 070,0 6 500,0Number of deals 51 640 30 346 18 829 12 269Value (R millions) 15 440,3 9 780,5 3 046,5 3 059,7Where appropriate, comparative figures have been restated.The figures for the financial years 1997 – 2000 are based on the restructured Group, comprising the holding company Anglo American Platinum Corporation Limited and its wholly ownedsubsidiaries. The financial years 1998 – 2000 are based on actual IAS and 1997 is based on pro forma IAS. Financial information published for financial years 1990 – 1996 is based on SouthAfrican GAAP and consists of the statistics for Anglo American Platinum Corporation Limited (formerly Rustenburg Platinum Holdings Limited).*Smelting costs are included in on-mine costs.114

December December December December December December1996 1995 1994 1993 1992 19913 899,7 3 654,1 3 352,3 3 001,2 2 823,5 3 161,8198,5 185,7 172,7 152,5 162,7 195,43 701,2 3 468,4 3 179,6 2 848,7 2 660,8 2 966,42 943,1 2 707,9 2 341,1 2 069,0 1 945,1 1 630,12 849,4 2 630,5 2 235,3 2 088,6 1 981,1 1 757,62 385,7 2 179,2 1 936,4 1 883,0 1 746,4 1 517,6163,2 168,9 101,6 * * *300,5 282,4 197,3 205,6 234,7 240,0— — — — — —70,5 (6,6) 22,4 (54,8) (94,2) (178,7)— — — — — —23,2 84,0 83,4 35,2 58,2 51,2758,1 760,5 838,5 779,7 715,7 1 336,31,8 0,3 0,7 2,9 0,8 10,0(84,3) (75,8) (65,8) (58,3) (58,5) (59,6)675,6 685,0 773,4 724,3 658,0 1 286,745,8 40,4 29,9 33,7 51,8 132,63 5003 0002 5002 0001 5001 0005000Headline earnings anddividends per sharecents1991199219931994199519961997Headline earnings per shareDividends per shareShare price199819992000721,4 725,4 803,3 758,0 709,8 1 419,3258,7 213,2 303,9 283,4 274,4 261,987,8 63,0 110,8 90,9 93,4 469,021,7 50,3 82,7 74,9 44,7 127,439 00035 000cents353,2 398,9 305,9 308,8 297,3 561,0289,2 269,4 206,8 206,8 288,1 438,7580,1 557,2 671,8 471,9 467,6 908,9(317,3) (286,9) (464,9) (462,7) (324,8) (273,1)(33,2) (100,5) (200,0) (206,7) (319,5) (797,4)730,4 500,8 341,5 341,5 539,0 684,4364,4 327,1 495,6 500,5 376,6 483,7251,8 322,3 315,7 338,1 283,3 189,1728,6 446,1 252,5 262,4 360,8 511,32 905,4 2 558,5 2 229,6 2 029,7 1 872,8 1 823,731 00027 00023 00019 00015 00011 0007 0003 000199119921993199419951996199719981999200012,9 16,7 14,4 15,8 16,1 30,234,5 33,4 15,9 19,8 21,4 24,719,4 20,8 25,0 26,0 25,3 42,327,2 29,2 36,2 39,9 42,5 91,315,2 15,6 24,1 21,9 19,5 42,0— — — — — —2,6:1 2,5:1 1,9:1 2,2:1 2,3:1 2,4:12 472,1 2 265,7 2 089,7 1 857,4 1 990,9 2 213,4High/lowAverage priceRand revenue per platinumounce sold131,4 127,6 125,3 125,3 125,3 125,3130,2 126,4 125,3 125,3 125,3 125,3270,3 311,6 239,4 242,8 233,6 444,2200,0 222,0 170,5 165,0 205,0 312,59 0007 500Rand150,0 147,0 102,5 102,5 142,5 225,050,0 75,0 68,0 62,5 62,5 87,56 0004 5008 409,6 7 656,0 14 033,6 10 274,6 8 739,7 7 392,712,1 6,5 5,4 8,1 4,5 7,89 000,0 11 000,0 12 600,0 8 500,0 8 625,0 7 800,06 000,0 6 000,0 7 200,0 5 775,0 5 825,0 5 025,06 400,0 6 000,0 11 200,0 8 200,0 6 975,0 5 900,07 082 3 218 3 636 4 239 3 626 4 844880,9 516,9 527,2 574,4 320,6 537,93 0001 50001991199219931994199519961997199819992000115

Corporate" Human Resources Review . . .Transformation processHuman ResourcesDuring the year Anglo Platinum vigorously pursued its people-centred transformationprocess. A Group human resources (HR) strategy rooted in the Group’s vision andbusiness strategy was adopted by all the Business Units. To give effect to the newHR strategy, action plans with specific objectives and deadlines were integrated withthe business plans and with the budget process.Progress was attained in the field of employee relations through the establishmentof a partnership forum in which all unions and associations participate withmanagement representatives. As a result, instead of multiple negotiation forums,only one collective bargaining forum was agreed for substantive negotiations,covering all mining bargaining units. This led to a single, common substantiveagreement being signed by all parties. For the first time the Company reached atwo-year agreement with all its unions and associations. This period will be used toconsolidate and finalise progressive relationship structures for the future.The partnership forum also established joint task teams which worked together to,inter alia, finalise any issues outstanding from previous negotiations. In addition,joint committees were established to discuss:● Employment equity reports and plans prior to their timeous submission to theDepartment of Labour (DoL).● Workplace skills plans, which were also timeously submitted to the DoL.The partnership forum and its substructures are seen as a catalyst for progressivechange and as a platform for joint decision-making – a process which will enableemployees to actively take part in the affairs of the Group.The Group has been engaged in consultations and negotiations with all recognisedunions and associations on the adoption and implementation of the new EmployeeRelations strategy in order to improve relationships and hence optimise theperformance of the Group’s human resources.The alignment of the mines’ and the Process Division’s collective agreements andconditions of employment has been initiated and remains a priority during 2001.Anglo Platinum: Membership of recognised Unions and Associationsas at 31 December 2000Union/AssociationMembershipNational Union of Mineworkers (NUM) 14 238Mouthpeace Workers Union (MPWU) 8 369United Association of South Africa (UASA) 2 201National Employees Trade Union (NETU) 1 373Mineworkers Union (MWU) 292South African Electrical Workers Union (SAEWA) 140National Union of Metalworkers of SA (NUMSA) 310Building Motor Engineering and Allied Workers Union (BMEAWU) 4 120Underground training centre116

Like the mines’ collective agreement, the Process Division’s substantive collective agreement also expires in June 2002.Non-unionised employees are regarded as a significant part of the Group and they are therefore treated as equallyimportant stakeholders in all relationship structures.Apart from the protected wage strike by the NUM, which lasted for some five weeks, the year 2000 was a relatively calmperiod for the Group in respect of industrial action.Employment equityThe Anglo Platinum employment equity plan and report was presented to the Department of Labour in accordance withlegal requirements. This report was developed in consultation with the recognised unions and other employees respectively.An employment equity committee representing management and employees exists at each of the Business Units. On aregular basis the progress in implementing the equity plans is reviewed by the Executive Committee of Anglo Platinum.In compliance with Section 22 of the Employment Equity Act, the table below summarises the report as submitted to theDepartment of Labour. The table sets out the occupational categories at 30 April 2000 compared to the 2005 target.Anglo Platinum: Employment Equity PlanAt 30 April 2000 Target – 2005Occupational category White Designated* Designated% White Designated* Designated%Top Management 23 1 4,2 20 6 23,1Senior Management 179 4 2,2 134 48 26,4Management/Specialists 536 61 10,2 418 284 40,5Supervisory/Specialists 1 014 306 23,2 1 341 1 150 46,2System Processors 1 396 1 034 42,6 1 489 2 359 61,3Operators 412 17 831 97,7 1 389 10 493 88,3Primary (Elementary) 157 17 587 99,1 1 830 22 442 92,5Non-permanent employees 132 118 47,2 34 45 57,0Total – Group 3 849 36 942 90,6 6 655 36 827 84,7*Designated groups include black people (Africans, Coloureds and Indians), women and people with disabilities.Surface training at Amandelbult No. 1 ShaftThe employment equity policy is a public commitment by Anglo Platinum to the followingequity principles:● To eliminate unfair discrimination in employment● To treat all persons equally, fairly and with dignity and respect● To achieve a diverse, efficient workforce that is equitably representative of thepopulation in its operational areas● To create opportunities for and remove barriers to HR development● To involve employees and their representatives in employment equity matters● To comply with legislative requirements● To be an effective corporate partner of communities, Government and other socialstakeholders● To support the process of employment equity in its widest form.117

Corporate" Human Resources Review . . . (continued)HIV/AIDS strategy and interventionsAnglo Platinum is keenly aware of the enormous human tragedy of the HIV/AIDSpandemic, as well as the economic threat that it poses. The Anglo PlatinumHIV/AIDS programme was launched in 1998 in order to protect the Group andits stakeholders through the prevention and management of HIV/AIDS, both atHuman Resourcesthe Operations and in surrounding communities.The HIV/AIDS strategy is driven at both the Corporate and the operational level.The Group’s progress in implementing its strategy and plans are the subject of aformal monthly reporting system.The objective of the above programme is to minimise the total impact of theHIV/AIDS epidemic on the Group and its stakeholders, and to ensure the longtermsustainability of its business operations.The following diagram describes how Anglo Platinum’s HIV/AIDS interventionssupport this objective.HIV/AIDS: Overall Programme Objective:To minimise the total impact of the HIV/AIDS epidemic on the Group and its stakeholders, and to ensure thelong-term sustainability of its business operationsCo-operation withOther RoleplayersCommunity Projects:Support EpidemicImpact Containment● Condoms● Treating SexuallyTransmittedDiseases (STDs)● Communicationand educationSupport welfareof stakeholdersResearch andSharing Experience:Support Living withAIDS● TreatmentSupport ProgrammeDevelopment andRenewal● Best PracticeBusiness InterventionsPrevalenceTesting andModellingCost ofHIV/AIDSSocial andGeographicAssessmentProgrammeDevelopmentand RenewalEconomic ImpactContainmentEpidemic ImpactContainmentLiving with AIDSCommunicationand EducationImplement BestPractice● RestructuringBenefits● Reducingabsenteeism● Performancemonitoring● Recruitmentand Training● Mechanism● Condoms● Treating SexuallyTransmittedDiseases (STDs)● Voluntary Testingand Counselling● Treatment● Support● Awareness● Attitude change● BehaviourchangePlanReportEnsure ProfitabilitySave LivesExtend WellnessSupport AllInitiativesImplementMonitorSustainablebusinessoperationsMinimiseimpact onstakeholdersMajor programme areas are:CO-OPERATION WITH OTHER ROLEPLAYERSAnglo Platinum engages with a number of roleplayers at the local and nationallevels to support and address specific interventions.THE OBJECTIVE OF THE HIV/AIDS programme is to minimise thetotal impact of the HIV/AIDS epidemic on the Group and its stakeholdersand to ensure the long-term sustainability of its business operations.118

BUSINESS INTERVENTIONSPrevalence testing and modellingAnglo Platinum manages a detailed impact assessment programme which quantifiesthe effects of the disease on operations.Prevalence testing is the only method of establishing the spread of the diseasewith certainty.Early indications at the Operations where prevalence testing has taken place arethat some 18 – 22% of the Group’s workforce is infected – this is somewhat lowerthan previous estimates.The results of the tests are fed into a financial model and a social and geographicalassessment is undertaken to ensure that Anglo Platinum is aware on an ongoingbasis of the relevance and success of its interventions.The financial model addresses the cost associated with absenteeism, loss of production,death in service, medical treatment and other costs.It currently shows that the estimated cost to theGroup of HIV/AIDS for 2001 is R54,6 million.The loss of staff due to the disease is expected tobe less than 4% per annum, peaking in 2006.The model also provides a clear indication as to theneed for specific interventions by way of treatment,recruiting and training.STRATEGIC INTERVENTIONSHIV/AIDS interventions fall into five strategic areas which are:Economic impact containmentHIV/AIDS impacts on absenteeism, recruitment and training, medical costs, employeebenefits and production efficiencies. This impact is controllable through appropriateinterventions which include improving the health and productive capability ofemployees, expanding recruitment and training programmes, reducing medical coststhrough the creation of a Health Management Organisation, reviewing andrestructuring employee benefits and investigating alternative production methodssuch as mechanisation.Campaigning to fight AIDSEpidemic impact containmentKey interventions include education, promoting the use of condoms and the treatmentof STDs, both in the workforce and in the communities surrounding the Operations.Living with AIDSAnglo Platinum recognises that with appropriate care, people with HIV cansignificantly extend their wellness periods, and continue to lead healthy andproductive lives. Anglo Platinum is reviewing its counselling facilities to cater for119

Corporate" Human Resources Review . . . (continued)the anticipated increase in voluntary testing and counselling. Employees withHIV are currently treated for opportunistic infections and Anglo Platinum supportsAnglo American plc’s investigation into obtaining affordable antiretroviral drugs.Human ResourcesCommunication and educationCommunication and education underpin each of the other elements. The focus isto change behaviour. Poster and video campaigns and awareness events arefrequently undertaken. HIV/AIDS communication has been included in inductiontraining. Community peer education programmes have been implemented inthe local communities around most of the Business Units, and a workplace peereducation programme has been set up at Rustenburg Business Unit. Similarprogrammes will be rolled out to all other Business Units during 2001.Programme development and renewalThe Group Corporate HIV/AIDS team continues to research and implement bestpractice, and to keep the HIV/AIDS programme dynamic.Anglo Platinum is confident that the impact of the HIV/AIDS epidemic ismanageable through its current and planned interventions.Corporate social investmentAnglo Platinum’s contribution to social investment development programmes wasincreased by some 50% to R27 million during the year. The social investment programmesare undertaken in four distinct areas.Firstly, R9 million was donated to address national issues via the Anglo American plcChairman’s Fund. Its philosophy is to assist those who are willing to assist themselvesand it strongly supports programmes aimed at improving education, health, welfareand development.Secondly, R7 million was contributed to the Business Trust, which focuses on the jointefforts of business and Government to address the issues of poverty and crime byeducation and job creation initiatives.The third area concerns the Anglo Platinum Schools Project, which is designed toaddress the need for quality education for its own and broader staffing requirements.This project, now in its tenth year, continues to bring about significant improvementin the quality of matriculation results, the standard of school management andadministration and the availability of competent youth for recruitment purposes.The fourth programme targets the North West and Northern Provinces, particularlythe communities proximate to Group operations. The objective is to empowerVaalkop primary health care clinic120

communities to manage their own development and to promote sound relationshipswith these communities. Projects supported during the year include:● Education programmes● Infrastructural programmes concerned with basic needs (e.g. school buildings andboreholes)● Job creation● Procurement and outsourcing to developing and emerging small businesses.RemunerationAs part of reviewing the overall remuneration framework for the organisation in supportof the HR business strategy, several initiatives were embarked upon. These includedthe following:● A phased increase of company contributions to the retirement fund for lower levelemployees in order to align them with marketnorms by 2002● An increased housing allowance for all eligibleemployees, also to achieve alignment with marketnorms● Review of the Core Conditions of Employmentto ensure alignment with best practice andlegislation (Platinum code review)● Design of a common grading system to beimplemented across all levels of the organisation● Enhancement of an incentive scheme and aplatinum bonus scheme to encourage superiorperformance.In addition to the above, the total packageremuneration approach has been introduced for senior management. This willfacilitate the achievement of internal and external benchmarking and enhance theGroup’s ability to attract and retain critical skills.Apprentices at diesel workshopHuman Resource Development (HRD)HRD is a vital part of the process of developing the business of the Group and of ensuringcontinuous improvement in its operations. As the Group moves towards greatermechanisation and the implementation of new and more efficient work organisationTeam preparing for undergroundfirefighting121

Corporate" Human Resources Review . . . (continued)templates, there will be a growing need for highly competent employees. HRDestablishes a framework that facilitates the achievement of a consistent andcontinuous flow of competent employees at all levels of the organisation to meetthe Group’s current and future business needs. The role of the Anglo PlatinumDevelopment Centre (ADC) is critical in this context.Human ResourcesTo this end, the competency-based training and development methodologywas reviewed to ensure compliance with best practice and changing legislation.Steps were also taken to upgrade the competency levels of HRD Practitioners,so that they will continue to provide the most effective training anddevelopment interventions.As part of the focus on skills development, Anglo Platinum acquired theEngineering Skills Training Centre (ESTC) from Randfontein Estates Limitedin June 2000. This facility provides a diverse range of engineering trainingproducts and is recognised in the industry as a provider of high qualityengineering skills training. This was a major strategic acquisition in the light ofthe Group’s expansion plans.The ESTC was established in 1984 and has since this time established a broadclient base, of which Anglo Platinum operations form some 60%. The revenuegenerated from external clients in effect significantly reduces the cost ofengineering skills training for Anglo Platinum operations. The other importantbenefits of Anglo Platinum owning its own engineering skills training facilityare, firstly, that training can be customised to serve the specific needs ofthe Group’s Business Units, a significant factor in the light of the newstructures and the passing of the Skills Development Act; and, secondly, thatthe ESTC is well placed to respond to the Group’s growing future need forengineering skills.The Co-operative Training Scheme, which is under the auspices of ADC, servesto feed high calibre, appropriately qualified and competent staff into the lowerprofessional levels in a variety of occupational disciplines. It is also animportant mechanism for addressing the Employment Equity needs of theGroup. During 2000, 41 university graduates and technikon diplomats obtainedacademic qualifications under this scheme.Historically, this scheme has supported some 250 trainees at any one time.This number will be increased to 285 in 2001 in order to develop sufficientemployees for the Group’s expansion requirements.Adult Basic Education (ABET)Primary school sponsored by RPMThe ABET department of the ADC won the United Distillers and VintnersSpecial Merit Award in 2000 for excellent performance in ABET. This awardwas valued at R100 000.122

The ABET department of the ADC actively participates in the ad hoc ABET committeefor the Mining Qualifications Authority (MQA) doing research in the sector on ABET.A proposal to address shortfalls will be circulated by the MQA towards the middle ofthe year.The ABET department is part of the task team established by Technikon SA andNorth West Department of Education concerned with the problems experienced in currentABET and proposals on standardisation for the province.An independent panel of examiners co-ordinated by the ADC Education Departmentset up exams for all ABET levels. The North West Department of Education moderatesthese cost-effective exams and a statement of results is issued. Other employers arejoining as from 2001 .The Education Department of ADC, in conjunction with the Education Departments ofother mining houses, has packaged and submitted to the South African QualificationsAuthority (SAQA) modular training for ABET Level 4 in three specialist fields –Mining, Metallurgy and Engineering.UNISA gives full recognition to the Group’s in-housefacilitator training for ABET diplomas and/orcertificates.An assessment tool based on unit standards for ABETfacilitators has been developed and utilisedthroughout the Group.GeneralLabour turnover fuelled by the skills shortage and abnormal labour market movementsis a major concern for South African organisations, including Anglo Platinum. Employeeattraction and retention plans have been implemented to address this problem.The Labour relations environment in the country has an adverse impact on AngloPlatinum as well. The Group nonetheless believes that its inclusive employee relationspolicies and structures provide a progressive mechanism to enable it and its employeerepresentatives to resolve their differences through dialogue and discussion in themajority of instances.Human resources conferenceAnglo Platinum believes that its HR philosophy, strategy and practices are of aprogressive and world class nature and provide a good foundation for optimising itsemployee performance.Equity forum123

Share Transactions Totally Electronic(STRATE)IntroductionThe JSE Securities Exchange South Africa (JSE) is proceeding with theimplementation of its new electronic settlement system and custody systemknown as Share Transactions Totally Electronic (STRATE).STRATE is designed to achieve the contractual, rolling and irrevocable settlementof share transactions by electronic book entries.The Board of Anglo Platinum has considered the implications of STRATE forboth the Company and investors in its securities and believes that it is in theinterests of both investors and the Company to advise the Company’sshareholders of the principal effects of STRATE.The primary objective of STRATE is to eliminate the many risks inherent in thecurrent method of settling transactions executed on the JSE in traded securitiesfor the benefit of all users on the JSE, including the Company and investors.Consequences of STRATEThe move to the STRATE system will involve many fundamental changes fromthe current paper-based settlement system.StrateAs the physical delivery of share certificates would be impractical underSTRATE, electronic records of ownership will replace share certificates.One of the primary responsibilities for shareholders as part of their preparationfor the STRATE environment will be the surrender of share certificates to anagent appointed on their behalf to handle their settlement requirements,namely a qualifying stockbroker or Central Securities Depositary Participant(CSDP) in order to create the initial electronic records of ownership as it wouldbe impractical and highly risky to permit both forms of ownership to be validfor settlement purposes.A CSDP is a registered Depositary Institution (custodian) in the STRATEenvironment. The CSDP or authorised or qualifying stockbroker will open ashare account for a shareholder and will ensure that share certificates areconverted into an electronic record – a process known as dematerialisation.After dematerialisation a shareholder will regularly receive statements recordinghis/her ownership of shares.New JSE building – Sandton124

Date of transfer to STRATEThe Company has been allocated a provisional dematerialisation date by STRATE ofMonday, 8 October 2001. Thus the dematerialisation date for share certificates incirculation representing the share capital of Anglo American Platinum CorporationLimited (Anglo Platinum) is 8 October 2001.This is the date from which investors’ shares can be converted into an electronic record inorder to become eligible to settle in the STRATE environment.If investors’ shares are not already in safe custody with a CSDP or qualifying stockbrokerby that date, they should be deposited with either of these agents on, or soon after, that date.Trading for electronic settlement begins on Monday, 29 October 2001. With effect from thelatter date it is legally necessary for shareholders to deposit their share certificates with aCSDP or qualifying stockbroker prior to selling their shares in order for the trade to besettled in terms of JSE regulations.Thus, as at 29 October 2001, shareholders will not be able to sell their Anglo Platinumshares unless such shares exist in electronic form in the STRATE environment,i.e. shareholders must first have deposited their share certificates with a CSDP or qualifyingstockbroker for conversion into an electronic record before they can deal in their shares.Electronic settlementFive business days after the 29 October 2001, i.e. on 5 November 2001, electronicsettlement of Anglo Platinum trades will take place for the first time.Thus, any trades that occur on or after 29 October 2001 will undergo simultaneous, final irrevocable settlement in an electronicenvironment. This means that the electronic share accounts of the buyer and the seller will be simultaneously updated exactly fivebusiness days after the trade. For the first time, settlement will be contractual and guaranteed.Although paper share certificates will retain their value after the move to STRATE, they will no longer be acceptable forsettlement purposes.Circular to shareholdersA separate circular will shortly be sent to shareholders containing details of the move to STRATE and will be accompanied byelection and mandate forms.125

126Annual Financial Statements

ANGLO AMERICAN PLATINUM CORPORATION LIMITEDFinancial Index128 REPORT OF THE INDEPENDENT AUDITORS129 DIRECTORS’ REPORT136 STATEMENT OF CORPORATE GOVERNANCE140 PRINCIPAL ACCOUNTING POLICIES146 INCOME STATEMENTS147 BALANCE SHEETS148 GROUP STATEMENT OF CHANGE IN SHAREHOLDERS’ EQUITY148 COMPANY STATEMENT OF CHANGE IN SHAREHOLDERS’ EQUITY149 CASH FLOW STATEMENTS150 UNITED STATES DOLLAR EQUIVALENT FINANCIAL STATEMENTS153 VALUE ADDED STATEMENT154 NOTES TO THE FINANCIAL STATEMENTSThe annual financial statements which appear on pages 129 to 181 were approvedby the Board of Directors on 9 March 2001 and are signed on its behalf by:L BoydCHAIRMANB E DavisonMANAGING DIRECTORDeclaration by the Company Secretary in termsof Section 268 (G) (d) of the Companies Act 1973as amendedI declare that, to the best of my knowledge, the Company has lodged with theRegistrar of Companies all such returns as are required of a public company interms of the Companies Act and that all such returns are true, correct and up todate in respect of the financial year reported upon.D A FreemantleCOMPANY SECRETARYJohannesburg9 March 2001127

Report of theIndependent AuditorsTO THE MEMBERS OFAnglo American Platinum Corporation LimitedWe have audited the annual financial statements andGroup annual financial statements of Anglo AmericanWe believe that our audit provides a reasonable basis forour opinion.Platinum Corporation Limited set out on pages 129 to 181for the year ended 31 December 2000. These financialstatements are the responsibility of the Company’sDirectors. Our responsibility is to express an opinion onthe financial statements based on our audit.ScopeWe conducted our audit in accordance with generallyaccepted auditing standards issued by the InternationalFederation of Accountants. These standards require thatAudit opinionIn our opinion these financial statements fairly present,in all material respects, the financial position of theCompany and of the Group at 31 December 2000, andthe results of their operations and cash flows for the yearthen ended, in accordance with South AfricanStatements of Generally Accepted Accounting Practiceand International Accounting Standards, and in themanner required by the Companies Act in South Africa.we plan and perform the audit to obtain reasonableassurance that the financial statements are free ofmaterial misstatement. An audit includes:● examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements,● assessing the accounting principles used and significantestimates made by management, and● evaluating the overall financial statement presentation.Deloitte & ToucheCHARTERED ACCOUNTANTS (S.A.)Johannesburg9 March 2001128

D i r e c t o r s ’ R e p o r tThe Directors have pleasure in submitting their reportand the annual financial statements of the Company andthe Group for the year ended 31 December 2000.In the context of the financial statements, the term Grouprefers to the Company and its wholly owned subsidiaries:Anglo Platinum Management Services (Proprietary) Limited(formerly Amplats Management Services (Proprietary)Limited), Rustenburg Platinum Mines Limited (RPM),Potgietersrust Platinums Limited (PPRust), LebowaPlatinum Mines Limited (Leplats) and all othersubsidiaries.Financial results and natureof businessThe financial statements set out fully the financial resultsof the Company and the Group. The Company isthe holding company of the Group. The nature ofthe Group’s business is described on the inside frontcover of this annual report.Corporate identitySince Anglo American Platinum Corporation Limitedemerged as one of the three listed entities arising fromthe unbundling of Johannesburg ConsolidatedInvestment Company Limited in 1995, the Company hasbeen known by the abbreviated name “Amplats”. Inorder to identify itself more clearly as the platinum armof its ultimate holding company Anglo American plc,which is the world’s largest natural resource company,the corporate identity of Anglo American PlatinumCorporation Limited was changed on 1 October 2000from “Amplats” to “Anglo Platinum”.ListingsIn consequence of the above, the abbreviated nameunder which the Company is listed on the JSE SecuritiesExchange South Africa (JSE) was changed from “Amplats”to “AngloPlat” with effect from Monday 2 October 2000.The Company’s JSE Clearing House Code has notchanged and remains “AMS”.The Company, which is the sole listed entity for theGroup, is also listed on The Stock Exchange, London.With effect from 16 March 1998, International DepositaryReceipts in respect of the Company’s shares were listedon the Brussels Bourse. These depositary receipts areissued by SOGÉS – DEWAAY, the issuing company ofBank Brussels Lambert SA.International accounting standardsThe Anglo Platinum Group’s annual financial statementscomply with International Accounting Standards andSouth African statements of Generally Accepted AccountingPractice.Reporting in United States dollarsFor the benefit of international investors, the incomestatement, balance sheet and cash flow statement of theGroup have been translated into United States dollarsand are presented on pages 150 to 152.Dividend policyAs outlined in the Finance Review, the Company’sdividend policy is to declare an interim and a finaldividend in respect of each financial year.In its discretion, and depending upon the perceived need toretain funds for expansion, the Board may resolve to awardcapitalisation shares to shareholders with such alternativeright to elect to receive cash dividends or to utilise suchcash dividends to subscribe for new shares in the Company,or otherwise, as the Board may deem appropriate.Dividends for the year ended31 December 2000INTERIM DIVIDENDOn Tuesday, 29 August 2000, the Board declared aninterim cash dividend (number 95) of 710 cents perordinary share to shareholders registered on Friday,15 September 2000. This dividend was paid on Friday,29 September 2000.129

Directors’ Report" (continued)FINAL DIVIDENDOn Monday, 12 February 2001 the Board declared a finalcash dividend (number 96) of 1100 cents per ordinaryshare to shareholders registered on Friday, 2 March 2001.This dividend is payable on Monday, 2 April 2001.Dividends for the 2000 calendar year totalled 1 810 cents(1999: 700 cents) per share.SPECIAL DIVIDENDAs the Group had accumulated large cash reserves and asit is expected that these reserves will continue to growdespite the extensive capital expenditure programmereferred to under “expansion programme” below, a specialcash dividend of 600 cents per ordinary share wasdeclared by the Board on 12 February 2001 to shareholdersregistered on Friday, 2 March 2001 payable on Monday,2 April 2001.This special dividend, which is additional to the interimand final dividends, resulted in dividends for the yeartotalling 2 410 cents per ordinary share.The Board is satisfied that the capital remaining after thepayment of both the final and special dividends issufficient to support the current operations and tofacilitate future development of the business.Corporate governanceDIRECTORS’ RESPONSIBILITIES INRELATION TO ANNUAL FINANCIALSTATEMENTSThe Directors are required by the Companies Act tomaintain adequate accounting records and to prepareannual financial statements which fairly present the stateof affairs of the Company and the Group as at the end ofthe financial year and of the profit or loss for that year,in conformity with international and South Africanstatements of Generally Accepted Accounting Practice.The financial statements are the responsibility of theDirectors and it is the responsibility of the independentauditors to report thereon.To enable the Directors to meet these responsibilities, theBoard sets standards and implements systems of internalcontrol aimed at reducing the risk of error or loss in acost-effective manner. The controls include the properdelegation of responsibilities within a clearly definedframework, effective accounting procedures and adequatesegregation of duties to ensure an acceptable level ofrisk. These controls are monitored throughout the Group,and all employees are required to maintain the highestethical standards in ensuring that the Group’s businesspractices are conducted in a manner which in all reasonablecircumstances is above reproach.Particulars relating to the Group’s internal controls andaudit approach, embracing the role and function of theAudit Committee, are set out in the Statement of CorporateGovernance on page 137. The audit approach entails athorough comprehension of the Group’s financial andaccounting objectives and analysis of the underlyingsystems and procedures.The focus of risk management in the Group is on identifying,assessing, managing and monitoring all known forms ofrisk across the Group. While operating risk cannot befully eliminated, the Group endeavours to mimimise itby ensuring that the appropriate infrastructure, controls,systems and ethics are applied throughout the Group andmanaged within predetermined procedures and constraints.The Directors are of the opinion, based on the informationand explanations given by management and the internalauditors, and on comment by the independent auditorson the results of their audit, that the internal accountingcontrols are adequate to ensure:● the reliability and integrity of financial and operatinginformation● the compliance of established systems with policies,plans, procedures, laws and regulations● the safeguarding of the Group’s assets againstunauthorised use or disposition● the economic, effective and efficient utilisation ofresources● the accomplishment of established objectives andgoals for operations or programmesand that accordingly the financial records may be reliedupon for preparing the financial statements andmaintaining accountability for assets and liabilities.130

Nothing has come to the attention of the Directors toindicate that any material breakdown in the functioningof these controls, procedures and systems has occurredduring the year under review.In preparing the financial statements the Group hascomplied with International Accounting Standards andwith South African Generally Accepted AccountingPractice and has used appropriate accounting policies,supported by reasonable and prudent judgements andestimates. The Directors are of the opinion that thefinancial statements fairly present the financial positionof the Company and of the Group at 31 December 2000,and the results of the operations and cash flowinformation for the year then ended. The Directors havereviewed the Group’s budget and cash flow forecast forthe year to 31 December 2001 and, in the light of thisreview and the current financial position, they are satisfiedthat the Group has adequate resources to continue inoperational existence for the foreseeable future. For thisreason, the Group continues to adopt the going-concernbasis in preparing the annual financial statements.The Directors believe that, through the comprehensivestructures and controls which are in place and theongoing monitoring of the activities of executive andoperational management, the Board maintains effectivecontrol over the Group’s affairs. The internal auditorsand the independent external auditors concur with theabove statements by the Directors.The Board considers that the Company and itssubsidiaries comply in all material respects with therecommendations of the Code of Corporate Practices andConduct (the Code) as issued by the King Committee onCorporate Governance.Details of the Group’s compliance with the Code andits corporate governance structures are set out in astatement of Corporate Governance on pages 136 to 139.The independent external auditors have consideredthe Statement of Corporate Governance and have reportedto the Board that nothing has come to their attentionwhich indicates that the Directors’ statement of complianceis not appropriate.Northam Platinum Limited (Northam)empowerment initiativesAs reported in the Directors’ Report for 1999, the Groupreceived 46 million shares in Northam in considerationfor the transfer to Northam of certain mineral rights anda mineral lease and mining authorisation. In addition,the Group also acquired 15 250 000 shares in Northam,which increased the Group’s shareholding in Northam to61 250 000 shares representing 26,7% of Northam’sissued share capital.On 28 August 2000, Mvelaphanda Platinum (Proprietary)Limited (Mvela), Rembrandt Group Limited (RembrandtGroup) and the Company announced that, in order toenhance empowerment in the mining industry, theCompany and Rembrandt Group had sold to Mvelaapproximately 17,5% and 5% respectively of Northam’sissued share capital. The empowerment transaction wasfacilitated by the sale by Anglo South Africa (Pty) Ltd tothe Company of the 13,3% interest it had received inNortham as part of the unbundling of Gold Fields ofSouth Africa Limited.As at 31 December 2000, the Group’s residual beneficialshareholding in Northam was 22,5% (51 724 380 shares).Expansion programmeOn 16 May 2000 the Company announced that theongoing assessment of supply and demand fundamentalsfor platinum indicated more favourable medium-termjewellery, industrial and autocatalyst demand and prospectsthan previously forecast. The Board therefore took adecision to increase Group production from the 1999calendar year base of some 2 million ounces to 3,5 millionounces of platinum by the end of calendar year 2006.The additional metal will be sourced from a number ofnew mines as well as the expansion of existing mines inSouth Africa.The estimated cost of the additional mining and associatedprocessing expansions is R12,6 billion (in 2000 moneyterms). The capital expenditure will be funded fromoperating cash flows and borrowings.131

Directors’ Report" (continued)Included in the announcement was a statement that theCompany would announce further mines and expansionsas and when approved by the Board. Pursuant to thisstatement, the following announcements were madeduring the financial year ended 31 December 2000 andin the subsequent period up to the date of this report:11 September 2000A project to produce an additional 395 000 ounces ofplatinum per annum at the Rustenburg Section of RPM(the Waterval Project). It is expected that the project willbe completed by February 2002 and steady state productionwill be achieved in the fourth quarter of 2002.The project is expected to cost some R1,31 billion in2000 money terms, including a 10% contingency provisionand will be funded from internal resources.12 December 2000A project to produce an additional 94 000 ounces ofplatinum per annum from UG2 ore at the Union Sectionof RPM (the Union Section UG2 expansion project). It isexpected that the project will be completed within twoyears and that steady state production will be achievedin the first quarter of 2003. This project will cost someR423 million in 2000 money terms, including a 10%contingency provision and will be funded from internalsources.5 February 2001A joint venture agreement concluded between AquariusPlatinum Limited (Aquarius), Kroondal Platinum MinesLimited (Kroondal) and Rustenburg Platinum Mines Ltd(RPM), a wholly owned subsidiary of Anglo Platinum,which was announced on 17 August 2000 and waseffective from 1 July 2001, subject to certain suspensiveconditions. In terms of an announcement dated5 February 2001 this joint venture was cancelled as theBoards of Kroondal and Aquarius did not approve thedevelopment programme for the joint venture.June 2000 which is estimated to cost R1,45 billion and isscheduled for completion in 2004. The project isdesigned to significantly reduce sulphur dioxide emissionsfrom the Waterval Smelter in Rustenburg and to increaseconverting capacity.On 8 February 2001, the Company announced thedevelopment of a smelter complex at Pietersburg with acapacity of 650 000 tons of concentrate per annum at a costof R1,31 billion (estimated in July 2001 money terms),the completion of which, allowing for the environmentalimpact assessment approval process, is expected in 2002.Mineral rightsOn 19 December 2000 the Company announced thatagreement had been concluded with the Minister ofMinerals and Energy concerning the granting of mineralleases. The Joint Venture Agreements (JVA) previouslyconcluded between Group companies and the formerLebowa State and others gave the Group the right tomine platinum group metals on a number of farms in theNorthern Province. The parties agreed that the JVAwould be cancelled and that the Minister would grantthe Group mineral leases over certain farms in theNorthern Province. It was also agreed that the Groupwould be granted the right to prospect with an option toacquire a mineral lease over an additional farm. Theseleases will operate for an initial period of 25 years andwill be renewable for a further period of 25 years.A royalty of 1,5% based on 80% of the value ofconcentrate produced will be payable to the State.In addition, the Group will release certain farms fromthe JVA.The agreement secures for the Group on the EasternLimb of the Bushveld Complex, the mineral resourcesrequired for its production and expansion programmesfor the foreseeable future.Expansion of process facilitiesThe Company is proceeding with the Anglo PlatinumConverting Process project approved by the Board inDirectorateChanges in the Directorate which occurred during theyear are set out hereunder:132

29 May 2000Mr P J V Kinver was appointed Alternate to Mr E Ford.1 August 2000Mr R Pilkington was appointed Alternate toMr D T G Emmett in place of Mr P Charlesworth.1 September 2000Messrs A H Calver and B A St John resigned as Non-Executive Directors and were replaced by Dr J W Campbelland Mr W A Nairn.Messrs A H Calver and V P Uren were appointed Alternatesto Messrs W A Nairn and M W King respectively.Since the year end Messrs B R Fleetwood andM H Smith were withdrawn as alternates to MessrsJ A Dreyer and R H H van Kerckhoven respectively.In terms of the Articles of AssociationMr L Boyd, Dr J W Campbell, Messrs B E Davison,J A Dreyer, M W King, W A Nairn, G R Pardoeand R H H van Kerckhoven retire as Directors atthe forthcoming Annual General Meeting and,being eligible, are available for re-election.The Board as it is currently constituted is set out onpages 182 to 184.INTERESTS OF DIRECTORSThe shareholdings of the Directors and Alternate Directorsin the ordinary shares of the Company at31 December 2000 which did not individually exceed1% of the Company’s issued share capital were:2000 1999Beneficial 49 309 31 842Non-beneficial 106 4 006In addition to the above, the Directors and theirAlternates who held office on 31 December 2000 wereinterested in 633 903 options to acquire ordinary sharesin the Company at that date at an average price of 9 146cents per share. This figure includes options to 94 690shares granted to Alternate Directors during the year. At31 December 2000 certain Directors held 545 000 callwarrants over ordinary shares in the Company.Subsequent to the year end certain Directors acquired330 000 call warrants over ordinary shares in the Companyand sold 51 581 shares resulting from the exercise ofshare options.No other material change in the aforegoing interests hastaken place between 31 December 2000 and the date ofthis report.Save for the share option scheme, no arrangements towhich the Company was a party existed at the end of thefinancial year, or at any time during the year, which wouldenable the Directors or their families to acquire benefitsby means of the acquisition of shares in the Company.There were no contracts of significance during, or at theend of, the financial year in which any Directors orAlternate Directors of the Company were materiallyinterested. No service contracts exist between theCompany and any of its Directors or Alternate Directorshaving notice periods exceeding one month or providingfor compensation and benefits in excess of one month’ssalary.INCREASE IN DIRECTORS’ FEESThe fees payable to the Directors and Chairman wereincreased during the 1999 financial year by 10% fromR25 000 per Director to R27 500 per Director per annumand for the Chairman from an aggregate of R35 000 toR38 500 per annum.Having regard to inflation, to the responsibilities of theDirectors associated with the expansion of the Groupand to the stature of the Company, a resolution will beproposed at the Annual General Meeting to be held onFriday, 25 May 2001, that the annual fees payable to theDirectors and Chairman be increased by 10% fromR27 500 to R30 250 per annum for each Director andfrom R38 500 to R42 350 per annum for the Chairman.Details are contained in the Notice to Members ofAnnual General Meeting and the Form of Proxy.133

Directors’ Report" (continued)Share option schemeA summary of shares held under option is provided belowin accordance with the provisions of the Company’sShare Option Scheme.Maximum number of sharesthat may be allocated – 5% ofissued ordinary share capital 10 850 615Number of options allocatedat 31 December 1999 4 324 070Add: Options allocated during the year 799 1495 123 219Less 960 320Number of options lapsedsince 1 January 2000 34 491Number of options exercisedand allotted during the year 925 829Number of options allocatedat 31 December 2000 4 162 899Number of options still reservedfor the option schemeat 31 December 2000 6 687 716In terms of the rules of the Share Option Scheme, theaggregate number of shares which may be subject tooptions for the purposes of the scheme, and the maximumnumber of options which any one participant may hold,shall not exceed 5% and 0,125% respectively of theCompany’s issued ordinary share capital from time to time.Share capitalThe authorised and issued share capitals of the Companyat 31 December were as follows:AUTHORISED1999 and 2000400 000 000 ordinary sharesof 10 cents each R40 000 000ISSUED1999216 086 472 ordinary sharesof 10 cents each R21 608 6472000217 012 301 ordinary shares of 10 cents R21 701 230The unissued ordinary shares are the subject of a generalauthority granted to the Directors in terms of section221(3) of the Companies Act. As this general authorityremains valid only until the next Annual General Meeting,which is to be held on 25 May 2001, members will beasked at the meeting to consider an ordinary resolutionplacing the said ordinary shares under the control of theDirectors until the 2002 Annual General Meeting.Special resolutions pertaining to change of name werepassed by four of the Company’s subsidiaries during theyear ended 31 December 2000.Repurchase of sharesAs indicated in the Preliminary Report dated 12 February2001, the Board proposes that at the forthcoming AnnualGeneral Meeting to be held on Friday, 25 May 2001,shareholders approve special resolutions:● to amend the Company’s Articles of Association by theinsertion of clauses authorising repurchase of issuedordinary shares, the reduction of share capital, sharepremium, reserves and/or any capital redemptionreserve fund, and payments to shareholders and● to grant a general authority permitting the repurchaseof such shares within the limitations imposed by theListings Requirements of the JSE and the CompaniesAct No.61 of 1973 as amended.As required by the JSE regulations, the Notice to Membersconvening the Annual General Meeting contains therequired statements by the Board of its intentionsregarding:● the utilisation of the desired general authority, and● the effect of a repurchase of shares up to a maximumof 10% of the Company’s issued ordinary share capitalupon the Group’s solvency and the adequacy of theworking capital and ordinary capital and reserves duringthe 12 months after the date of the Notice convening theAnnual General Meeting. The maximum generalrepurchase permitted by the Listings Requirements ofthe JSE is 20% of the Company’s issued share capital inany one financial year.134

Assuming that the general authority to repurchase sharesis approved at the Annual General Meeting, and althoughthe Board has not made a formal decision to repurchaseordinary shares, it believes that as the Group hasaccumulated large cash reserves, which are likely to growdespite the extensive expansion programme, circumstancesmay arise in which it might be opportune from timeto time to repurchase up to a maximum of 10% of theCompany’s issued ordinary share capital in the abovementionedtwelve-month period. Accordingly, the proposedgeneral authority provides the Board with flexibility torepurchase shares should it deem such repurchase to bein the best interests of the Company and the Group.dematerialisation of share certificates as envisaged in termsof section 91A of the Companies Act No.61 of 1973.The Notice of Annual General Meeting included in thisannual report incorporates a Special Resolution to amendthe Articles of Association and an ordinary resolutionauthorising the Directors to convert to STRATE as andwhen required by the JSE.PropertyThe register of land and buildings is available forinspection at the registered office of the Company duringnormal business hours.Share Transactions Totally Electronic(STRATE)Shareholders will be aware from announcements in thepress that, in line with international trends, the JSE isproceeding with the implementation of an electronicsettlement system for share transactions known as STRATE.This system results in the creation of electronic records ofshare ownership by means of a dematerialisation process.The move to the STRATE system will involve manyfundamental changes from the current paper-basedsettlement system. For the benefit of shareholders abrief outline of the implications of STRATE appears onpage 124 of this annual report.The Company has been allocated a provisionaldematerialisation date, namely Monday, 8 October 2001,from which date investors’ shares can be converted intoan electronic record.In view of the move to STRATE, it is necessary foramendments to be effected to the Company’s Articles ofAssociation in order to recognise and provide for theadoption of the new system.The Board proposes that at the forthcoming AnnualGeneral Meeting to be held on Friday, 25 May 2001,shareholders approve a Special Resolution to amendthe Company’s Articles of Association to cater for theAuditorsDeloitte & Touche continue in office as auditors of AngloAmerican Platinum Corporation Limited and AngloPlatinum Management Services (Proprietary) Limited,and Ernst & Young continue in office as auditors of RPM,PPRust and Leplats.AdministrationMr D A Freemantle continues in office as CompanySecretary. Anglo Platinum Management Services(Proprietary) Limited continues to act as administrative,financial and technical advisers to the Company.Anglo American Services (UK) Limited continues inoffice as London Secretaries to the Company.Computershare Services Limited and IRG plc are,respectively, South African Transfer Secretaries andUnited Kingdom Registrars of the Company.Holding company and ultimateholding companyThe Company’s holding company is Anglo South Africa(Proprietary) Limited. The ultimate holding companyis Anglo American plc, which is incorporated in theUnited Kingdom.135

Statement of Corporate GovernanceGeneral principlesThe Board affirms its commitment to the principles ofopenness, integrity and accountability and to theprovision of timeous, relevant and meaningful reportingto all stakeholders. It ensures that the Group’s businessis conducted in accordance with high standards of corporategovernance and with local and internationally acceptedcorporate practice. These standards are entrenched in theGroup’s established system of internal control by itsprocedures and its policies governing corporate conduct,with particular emphasis on the importance of thequalitative aspects of corporate governance.The Directors endorse the Code of Corporate Practicesand Conduct as issued by the King Committee onCorporate Governance and consider that the Group compliesin all material respects with the provisions thereof.All the key principles underlying the King recommendationsas contained in the Code are reflected in theGroup’s corporate governance structures, which arereviewed from time to time to take into accountorganisational changes and international developmentsin the field of corporate governance. It is the policy of theBoard and management to actively review and enhancethe Group’s systems of control and governance on acontinuous basis to ensure that the Group’s business ismanaged ethically and within prudently determined riskparameters in conformity with internationally acceptedstandards of best practice.Risk managementIn pursuance of its policy of aligning Group corporategovernance with international best practice and therebysafeguarding the interests of stakeholders, the ExecutiveCommittee has been mandated by the Board tosupplement the Group-wide system of internal control tomonitor, manage and control significant Group risks. Theseobjectives are enhanced through compliance with, andobservance of, the UK Turnbull Guidelines on internalcontrol.This risk management system is a principal factorfacilitating the discharge of the Board’s responsibility forensuring that the extensive risks associated with theGroup’s operations are effectively managed and theinterests of stakeholders safeguarded.Group risk management is achieved through theidentification and control of all significant business risks,including operational risk, which could adversely affectthe achievement of the Group’s business objectives.The Board has determined the level of acceptable risk andrequires the operations to manage and report in terms thereof.Material issues and circumstances which could adverselyimpact on the Group’s reputation are considered to constituteunacceptable risk.Fifteen significant risk areas have been identified whichform the basis for regular and exception reporting to theExecutive Committee and the Board.For each significant risk area, risk owners have beenappointed. Practical guidance for each risk area is detailedin the operational risk management handbook. The riskassessment and reporting criteria are designed to providethe Board with a consistent view of the key risks.The established system of internal control for themanagement of risk, which requires transparency and clearaccountability, has the commitment of senior management.The above-mentioned system of internal control, whichhas been implemented at all key operations and is tailoredto suit the specific circumstances of each Business Unit,provides reasonable rather than absolute assurance that theGroup’s business objectives will be achieved within theprescribed risk tolerance levels. The significant risk areasand control processes pertaining thereto are monitoredacross the Group on a continuous basis.In conducting its annual review of the effectiveness ofrisk management, the Board considers the key findingsfrom the ongoing monitoring and reporting processesand management and independent assurance reports. TheBoard also takes account of material changes and trends inthe risk profile and considers whether the control system,including reporting, adequately supports the Board’s riskmanagement objectives.The Board is satisfied that there is in place an adequateongoing risk management process which identifies, evaluatesand manages the significant risks faced by the Group.The Directors specifically report as follows:Responsibility for financialstatementsThe statement of responsibility for the financial statementsis set out in the Directors’ Report on page 130.The Board of DirectorsThe Company has a unitary Board that comprises sixExecutive and eight Non-Executive Directors. Mr L Boyd,the Chairman of the Board of Directors, is a Non-ExecutiveDirector. All the Directors bring to the Board a widerange of expertise as well as significant financial,commercial and mining experience and, in the case ofNon-Executive Directors, independent perspectives andjudgement.136

The Board is responsible to the shareholders for settingthe direction of the Group through the establishment ofstrategic objectives and key policies. It monitors theimplementation of the strategies and policies through astructured approach to reporting on the basis of agreedperformance criteria and defined, written delegations tomanagement for the detailed planning and implementationof such objectives and policies. The Board meets quarterly,or more frequently if circumstances so require, to reviewmatters specifically reserved for its decision, includingfinancial and operational results, and to consider issuesof strategic direction, major acquisitions and disposals,approval of major capital expenditure and any othermatters having a material effect on the Group.All Directors are subject to retirement by rotation andre-election by shareholders at least once every threeyears in accordance with the Company’s Articles ofAssociation. The appointment of new Directors isapproved by the Board as a whole.All Directors have access to the advice and services of theCompany Secretary and, with the prior agreement of theChairman, are entitled to seek independent professionaladvice concerning the affairs of the Company at itsexpense.The Board has established a number of standingcommittees – namely, the Executive Committee, theAdministration Committee, the Operating Committee,the Audit Committee, the Remuneration Committee, theRisk Committee and the Safety, Health and Environment(SHE) Committee. In addition, the Group’s employmentpractices are monitored by the TransformationCommittee. These committees operate within the definedterms of reference laid down in writing by the Board.The Audit and Remuneration Committees are chairedby a Non-Executive Director and have a majority ofsuch Directors.Executive and AdministrationCommitteesThe membership of the Company’s Executive andAdministration Committees consists of the Company’ssix Executive Directors namely:B E Davison (Chairman)J A DreyerD T G EmmettE FordB E NgubaneR H H van KerckhovenSecretary: D D van Schaik (Mrs)The Executive Committee is responsible to the Board forrecommending the Group’s policies and strategies and formonitoring their implementation according to the Board’sdirectives. It deals with all executive business, is responsiblefor all material matters not specifically reserved for theBoard, and co-ordinates and monitors the use of resourcesto achieve the aims of the Group. The AdministrationCommittee is responsible for all matters pertaining tostaff and administration.Operating CommitteeThe Operating Committee, a sub-committee of the ExecutiveCommittee, is responsible for directing, monitoring andcontrolling all technical aspects of the Group’s operations,including mining, metallurgical, refining and relatedoperations.The members of the Company’s Operating Committeeare as follows:E Ford (Chairman)P J V KinverP CharlesworthT S O’ConnorP M CoetzerD PelserJ A GeldenhuysR PilkingtonC I GriffithA RudolphW GrundlingD E SpannJ M HalheadC A F SweetT N HolohanF A UysJ R Johnston (Dr)P R S van DorssenA N JonesSecretary: G F LindenAudit CommitteeThe Directors’ Report (page 130) contains a statementrelating to the Directors’ responsibilities. For the purposesof enabling the Directors to fulfil these responsibilities,and for maintaining systems of internal controls aimed atreducing the risk of error or loss, the internal auditfunction, acting on behalf of the Board, independentlyappraises the Group’s internal systems of control andreports its findings to the Audit Committee. The auditapproach entails a thorough comprehension of theGroup’s financial and accounting objectives, and of theunderlying systems and procedures.The audit plan is determined annually, based on therelative degree of the inherent risk of Group operations.The overall effectiveness of internal auditing in the Groupis achieved through the development of audit standards,methodologies and techniques, and by conducting ongoingtraining programmes to ensure that those tasked withthis responsibility remain abreast of current developmentsand practices.137

Statement of Corporate Governance" (continued)The Audit Committee has a majority of Non-ExecutiveDirectors, including its Chairman. Responsible formonitoring the adequacy of the Group’s financial controlsand reporting, it is charged with, inter alia, reviewingthe audit plans of the internal and external auditors,ascertaining the extent to which the scope of the auditcan be relied upon to detect weaknesses in internalcontrols, and ensuring that interim and year-end financialreporting meet accepted international accounting standards.In addition to the executives and managers responsiblefor finance, the head of internal audit and the externalaudit partners attend meetings of the Audit Committee.The committee meets at least three times a year. Thehead of internal audit and the external audit partnershave unrestricted access to the Chairman of the committee.The members of the Audit Committee are:M W King (Chairman)C B BrayshawB E DavisonV P UrenSecretary: D A FreemantleRemuneration CommitteeThe Remuneration Committee has a majority of Non-Executive Directors, including its Chairman. It approvesremuneration for the Executive Directors and seniorexecutives and is responsible for the policy and operationof the Company’s share option scheme. Independentexternal studies and comparisons are used to ensure thatrewards and incentives are linked to both individual andGroup performance.The Executive Directors, who are full-time employees,are appointed to the Board to bring to the managementand direction of the Group the skills and experienceappropriate to its needs as a major international business.They are, accordingly, remunerated on terms commensuratewith market rates that reflect such responsibilities.Executive Directors receive salaries and benefits,performance-linked payments, allocations of options toshares, and certain benefits upon retirement. Each of theelements of remuneration is further detailed below:● Executive Directors receive a salary and benefits thatreflect their management responsibilities and appropriateexperience and that reward individual performance.Salaries are reviewed annually by reference toperformance.● Executive Directors participate in an incentive planlinked to the performance of the Group. The plan isdesigned to reward executives for achieving sustainedincreases in earnings.● Executive Directors participate in a medical aid schemeand in contributory retirement schemes established bythe Group to provide post-retirement benefits to all staffon retirement. Executive Directors are also entitled topost-retirement medical benefits on the same basis asother retired employees.Executive Directors and their Alternates also participatein the Company’s Share Option Scheme, which isdesigned to recognise the contributions of senior staff tothe growth in the value of the Company’s equity. Non-Executive Directors do not participate in the ShareOption Scheme. Within the limits imposed by theCompany’s shareholders, options are allocated to theDirectors and senior staff in proportion to theircontributions to the business as reflected by theirseniority. The options, which are allocated at the middlemarket price ruling on the trading day prior to the dateof allocation, vest after stipulated periods and areexercisable up to a maximum of 10 years from the date ofallocation.Each of the Executive and Non-Executive Directorscurrently receives Directors’ fees at the rate of R27 500per annum (1999: R25 000). The Chairman receives anadditional sum of R11 000 per annum (1999: R10 000).The total sum currently payable to Directors is R396 000per annum.Non-Executive Directors who serve on the AngloPlatinum Group Audit and Remuneration Committeeseach receive fees at the rate of R10 000 per annum(1999: R10 000) and R5 000 (1999: R5 000) respectively.The Chairman of the Audit Committee receives anadditional R10 000 per annum (1999: R10 000), whilethe Chairman of the Remuneration Committee receivesan additional R5 000 per annum (1999: R5 000).The members of the Remuneration Committee are:L Boyd (Chairman)M W KingB E DavisonSecretary: D A FreemantleRisk CommitteeThe Risk Committee, which comprises marketing andtreasury executives, is a sub-committee of the ExecutiveCommittee. It is responsible for risk managementactivities within the Group subject to the overall limitsset by the Board.The members of the Risk Committee are:R H H van Kerckhoven (Chairman)T E AikenC G Buchanan138

Safety, Health and Environment(SHE) CommitteeThe Anglo Platinum Group strives to conduct its businesswith due regard for economic, social, cultural, safety, healthand environmental concerns. The safety and health of theGroup’s employees and the well-being of the communitiessurrounding its mines are the focus of comprehensivepolicies and programmes dedicated to this end.The Safety, Health and Environment Committee, whichis a sub-committee of the Executive Committee, isresponsible for developing framework policies andguidelines for safety, health and environment managementand ensuring the progressive implementation of samethroughout the Group.The committee is also charged with responsibility formonitoring Group compliance with the various health,safety and environmental laws that affect Group companies.The members of the SHE Committee are currently:E Ford (Chairman)E F HeymannC J BadenhorstJ R Johnston (Dr)R J Dowdeswell (Dr)D J StantonG D DubberS P VermaakSecretary: G F LindenEmployment equityThe Group has a formal employment equity policy whichis aligned with the requirements of the EmploymentEquity Act.The Transformation Committee, which is a sub-committeeof the Executive Committee, is responsible, inter alia, forthe implementation of and compliance with therequirements of the Employment Equity Act.The Transformation Committee is made up ofrepresentatives from each Business Unit and from theCorporate Office and is chaired by the ExecutiveDirector: Human Resources. Its members are:B E Ngubane (Chairman) B du ToitD FarmerJ A GeldenhuysL HeynekeC KernJ LouwK MoabeloD MullerA NieuwoudtR SchoemanK Seopela (Ms)L StanderR Steyn (Ms)K VenterH ZondiInvestor and shareholder relationsRegular presentations attended by Executive Directorsare made to institutional investors, analysts and themedia in South Africa, Europe and the United Kingdomto communicate Group strategy and performance. Constantcontact is maintained with those groups by the Company’sCorporate Finance and Public Affairs Departments.A corporate website (http://www.angloplatinum.com)facilitates the dissemination of the latest Group financialand operational data as well as historical information.Employee participationIn the field of employee relations, an interim partnershipforum and its substructures have been established as aplatform for joint decision making.The forum, which comprises representatives of all unionsand associations and management, has established jointtask teams which worked together to finalise, inter alia,● employment equity reports and plans for submissionto the Department of Labour● workplace skills plans and other related issues.Corporate code of conductThe Group is committed to promoting the observance ofthe highest standards of ethical behaviour amongst itsDirectors, management and employees. In accordancewith this objective, a Code of Ethics has been circulatedthroughout the Group to provide a clear guide to thebehaviour expected of all employees in their dealingswith each other and with the Group’s stakeholders. Allemployees of the Group are required to maintain thehighest ethical standards to ensure that the Group’sbusiness practices are conducted in a manner which isabove reproach.Having regard to the provisions of the Insider TradingAct, the Company operates “closed periods” prior to thepublication of its interim and year-end financial results,during which periods Directors and officers and otheremployees of the Group likely to be in possession ofprice-sensitive information may not deal in the shares orother instruments pertaining to the shares of the Companyor in any investment relating to the Company’s shares.This principle is also applied at other times wheneverwarranted by circumstances.139

Principal Accounting PoliciesThe financial statements are prepared on the historicalcost basis. Set out below are significant features of theCompany’s and the Group’s accounting policies whichare consistent with those applied in the previous yearwith the exception of the newly adopted accountingpolicies referred to in the subsequent paragraphs. Thesepolicies comply with the accounting standards issued bythe International Accounting Standards Committee andthe South African Institute of Chartered Accountants andwith the disclosure requirements of the South AfricanCompanies Act.The Group adopted IAS 28 (AC 110), Accounting forinvestments in associates as a result of acquiring a 22,5%interest in Northam Platinum Limited. The accountingpolicy adopted is described in note 2, Investment in associate.The effect of adopting IAS 28 (AC 110) is evident in theincome statement and balance sheet as reflected inrespect of Income from associate and Investment in associateand the related notes 17 and 19 respectively. There wasno impact on past earnings, as the investment in the associatewas acquired during the year ended 31 December 2000.In order to comply with the revised requirements ofIAS 10 (AC 107), Events after the balance sheet date, theGroup changed the treatment of dividends proposed,whereby dividends and secondary taxation on companies(STC) thereon are recorded when the dividend is declared.The adoption of this treatment as described in theaccounting policy note 8 has the effect that the relatedtaxation charge (STC) is decreased by R411,2 million forthe year ended 31 December 2000 (R24,9 million for theyear ended 31 December 1999). The cumulative effect onAccumulated profits as a result of this treatment is reflected inthe Statements of Change in Shareholders’ Equity.During the year the Group changed its accounting policywith reference to Environmental rehabilitation – Restorationcosts. The effect of the time value of money is now accountedfor in respect of provisions pertaining to Restoration costs.The revised accounting policy is more fully described innote 15 Environmental rehabilitation – Restoration costs of theaccounting policies. The change in this accounting policyhad no material effect on past earnings.The Group has adopted IAS 39 (AC 133) FinancialInstruments: Recognition and Measurement, ahead of its effectivedate. In terms of this accounting standard, reportingenterprises should apply hedge accounting when and onlywhen all requirements set by the standard have beenmet, otherwise financial instruments should be accountedfor on a fair value basis. The fair value basis of accountingwas adopted and the accounting policy is more fully set outin note 13, Financial instruments, of the accounting policies.The early adoption of this standard had no effect on pastearnings.1. ConsolidationThe Group financial statements include the resultsand financial position of Anglo American PlatinumCorporation Limited and its subsidiaries. The resultsof any subsidiaries acquired or disposed of duringthe year are included from the dates control wasacquired and up to the date control ceased. Where anacquisition of a subsidiary is made during thefinancial year, any excess or deficit of the purchaseprice compared with the fair value of the attributablenet assets is recognised as goodwill and accounted foras described in the Goodwill accounting policy note 3.All intergroup transactions and balances areeliminated on consolidation. Unearned profits thatarise between Group entities are eliminated.2. Investment in associateAn associate is an entity, other than a subsidiary, inwhich the Group has a material long-term interestand in respect of which the Group exercises significantinfluence over its operational and financial policies.The results of such investments are accounted forusing the equity method of accounting based on themost recent audited financial statements or unauditedinterim financial statements of such associates.Unrealised profits and losses arising from intercompanytransactions are eliminated. The carryingvalues of investments in associates represent the costof the investment, including unamortised goodwill,140

the share of post-acquisition earnings and othermovements in reserves. The carrying value ofassociates is reviewed on a regular basis and if apermanent impairment in the carrying value hasoccurred, it is written off in the period in whichsuch impairment is identified.Goodwill arising on the acquisition of an associateis accounted for as described in the Goodwillaccounting policy note 3.3. GoodwillGoodwill, being the excess of the purchaseconsideration over the attributable fair value of thenet identifiable assets at date of acquisition, iscapitalised and amortised on a straight-line basisover the lesser of the assets’ useful life or twentyyears. An annual impairment review is undertakenof the carrying value and useful economic life ofsuch goodwill and any impairment is charged againstincome in the period in which the impairment arose.Negative goodwill, being the excess of theattributable fair value of the net identifiable assetsover the purchase consideration, is either recognisedas income immediately or as and when futureanticipated expenditure or losses are incurred.Where negative goodwill does not relate to expectedfuture expenditure or losses it is recognised asincome on a systematic basis over the lesser of thenon-monetary assets’ useful life or twenty years.date on which the mining ventures reach commercialproduction quantities, at which time capital workin-progresscosts are transferred to mining property,plant and equipment. Development costs to maintainproduction are capitalised and amortised over theestimated useful life of the asset.Mining property, plant and equipment are amortisedon a straight line basis, over the lesser of thirty yearsor their expected useful lives, to estimated residualvalues in five-year bands. Assets defined undersection 36 (11) (d) of the Income Tax Act No 58 of1962 (as amended) are amortised in line with theallowances granted under the Act, which arematched to the expected useful lives of these assets.Section 36 (11) (d) assets include the following miningassets: housing for residential occupation, hospitals,schools and similar amenities, recreational facilities,surface railway systems and non-mining motorvehicles.Assets subject to finance leases are capitalised atcost with the related lease obligation recognised atthe same value. Capitalised leased assets aredepreciated over their estimated useful lives.Finance lease payments are allocated, using theeffective interest rate method, between the leasefinance cost, which is included in interest paid, andthe capital repayment, which reduces the liability tothe lessor. Operating lease rentals are chargedagainst operating profit as they become due.NON-MINING4. Property, plant and equipmentMININGCapitalised mine development cost includes expenditureincurred to develop new mining operations, to definefurther mineralisation in existing ore bodies and toexpand the capacity of the mine. Costs includeinterest capitalised during the construction periodwhere financed by borrowings and the net presentvalue of future decommissioning costs. Amortisationis first charged on new mining ventures from theNon-mining assets are stated at historical cost lessaccumulated depreciation.Depreciation is provided on the straight-line basisover the useful lives of these assets at the followingannual rates:Plant and equipment – 10% to 25%Motor vehicles – 25%Office furniture and equipment – 10% to 50%Land is not depreciated.141

Principal Accounting Policies" (continued)IMPAIRMENTAn annual impairment review of mining and nonminingassets is carried out by comparing the netbook value of assets with their recoverable amounts.Recoverable amount is the higher of value in useand net selling price.Value in use of mining assets is determined byapplying a discount rate to the anticipated pre-taxcash flow for the remaining useful life of the assets.The discount rate used is the Group’s weightedaverage cost of capital as determined by the capitalasset pricing model.Value in use of non-mining assets is determinedwith reference to market values.Where the recoverable amount is less than the netbook value the impairment, when identified, ischarged against income to reduce the carryingamount of the affected assets to their recoverableamounts.The revised carrying amounts are amortised on asystematic basis over the remaining useful lives ofsuch affected assets.5. InvestmentsInvestments in subsidiaries are reflected at cost lessprovisions for any impairment in value.6. InventoriesREFINED METALSMetal inventories are valued at the lower of cost ornet realisable value on the weighted average basis.The cost per ounce or ton is determined as follows:● Platinum, palladium, rhodium and nickel arevalued by dividing the mine output into totalmine production cost less net revenue from salesof other metals in the ratio of the contribution ofthese metals to gross sales revenue.● Gold, copper and cobalt sulphate are valued atnet realisable value.WORK-IN-PROCESSWork-in-process is valued at cost of production lessnet revenue from sales of other metals.STORES AND MATERIALSStores and materials consist of consumable storesand are valued at average cost. Obsolete andredundant items are written off to operating costs.7. Revenue recognition● Revenue from the sale of metals is recognisedwhen the risk and rewards of ownership aretransferred to the buyer. Gross sales revenuerepresents the invoiced amounts for all metalssupplied to customers. Gross sales revenueexcludes value-added taxes.● Dividends are recognised when the right toreceive payment is established, with the exceptionof cumulative redeemable preference shares whosedividends are accrued on a daily basis.● Interest is recognised on a time proportion basiswhich takes into account the effective yield on theasset over the period it is expected to be held.● Royalties are recognised when the right to receivepayment is established.8. Dividends declaredDividends proposed and related taxation thereon atreporting intervals are charged to income only whenthe dividend is declared.9. ProvisionsA provision is recognised when there is a legal orconstructive obligation as a result of a past event forwhich it is probable that a transfer of economicbenefits will be required to settle the obligation anda reliable estimate can be made of the amount of theobligation.142

10. Deferred taxationDeferred taxation is provided at current rates usingthe balance sheet liability method. Full provision ismade for all temporary differences between the taxbase of an asset or liability and its balance sheetcarrying amount.No deferred taxation is recognised in thosecircumstances where the initial recognition of anasset or liability has no impact on accounting profitor taxable income.Assets are not raised in respect of the deferredtaxation on assessed losses unless it is probable thatfuture taxable profits will be available against whichthe deferred taxation asset can be realised in theforeseeable future.11. Exploration and researchExploration and research expenditure is written offin the period in which it is incurred, unless it isdeemed that such expenditure will lead to a capitalproject, in which case the expenditure is capitalisedand written off over the lesser of the expected usefullife of the asset or thirty years.12. Leased metalWhen metal is leased to fulfil marketing commitments,the equivalent cost of production at the date of thelease is charged to the income statement as an onminecost and reflected as a current liability in thebalance sheet. On the maturity of the lease theliability is credited to on-mine costs.The leasing costs associated with borrowed metalare charged to other costs included in the cost ofsales on a time-proportional basis.13. Financial instrumentsThe Group’s financial instruments consist primarilyof cash on hand, balances with banks, deposits on call,money-market instruments, derivative instruments,trade and other receivables, trade payables, borrowingsand investments other than those in subsidiariesor associates.FINANCIAL INVESTMENTSThe book value of cash deposits with banks andmoney-market instruments approximates their fairvalue. Negotiable instruments are recorded initiallyat cost and marked to market at reporting intervals.Any gain or loss arising from mark to market or achange from book value to fair value is included inthe determination of other net income.ACCOUNTS RECEIVABLEAccounts receivable is stated at the gross invoicevalue adjusted for payments received and whereappropriate provision for doubtful debts to reflectthe fair value of the expected economic benefit.ACCOUNTS PAYABLEAccounts payable is stated at the initial recognisedobligation less payments made and any adjustmentsmade to reflect the fair value of the expectedeconomic outflow of resources.DERIVATIVE INSTRUMENTSIn the ordinary course of its operations, the Group isexposed to fluctuations in metal prices, volatility ofexchange rates and changes in interest rates. TheGroup engages in a number of activities to managethese risks. These activities include hedging aportion of these exposures through the use ofderivative financial instruments. Forward salescontracts and option contracts are utilised to managemetal and currency exposures. The Group does notspeculate, acquire, hold or issue derivative instrumentsfor trading purposes.Derivatives are initially measured at cost, andassociated transaction costs are charged to the incomestatement when incurred. Subsequently theseinstruments are measured as set out below.All forward and option contracts are marked to marketat financial reporting intervals and any changes intheir fair values are included in other net income.143

Principal Accounting Policies" (continued)Gains and losses arising on contracts not spanning areporting interval are recognised and included inthe determination of other net income at the timethat the contract expires.14. Foreign currenciesThe South African rand is the functional currency ofthe Group.Foreign currency transactions are recorded at thespot rate of exchange on the transaction date.Monetary assets and liabilities designated in foreigncurrencies are translated at rates of exchange rulingat the balance sheet date.Foreign exchange gains or losses arising fromforeign exchange transactions are included in thedetermination of other net income.The balance sheets and income statements of foreignsubsidiaries are translated on the following bases:FOREIGN OPERATIONSForeign operations forming an integral part of the operationsof the GroupMonetary items of these operations are translatedusing the closing rate of exchange. Non-monetaryitems are translated at the rate of exchange at thehistorical transaction date. Income and expenseitems are translated at the annual weighted averagerate of exchange.Translation gains or losses on monetary items areincluded in the determination of other net income.FOREIGN ENTITIESForeign entities not forming an integral part of theoperations of the GroupAssets and liabilities for both monetary and nonmonetaryitems are translated at the closing rate.Income and expense items are translated at theannual weighted average rate of exchange.All gains or losses on exchange are taken directly toa non-distributable reserve until the foreign entity issold or disposed of.15. Environmental rehabilitationEstimated long-term environmental obligations,comprising pollution control, rehabilitation and mineclosure, are based on the Group’s environmentalmanagement plans in compliance with currenttechnology, environmental and regulatory requirements.DECOMMISSIONING COSTSThe net present value of estimated future decommissioningcosts which embody future economic benefitsare capitalised as property, plant and equipmentwhen the obligation arises and concomitant provisionsare raised. These estimates are reviewed annually anddiscounted using a pre-tax rate that reflects currentmarket assessments of the time value of money.The increase in decommissioning provisions due to thepassage of time is charged to net investment income.Decommissioning assets are amortised on a straightlinebasis over the lesser of thirty years or theexpected benefit period.RESTORATION COSTSChanges in the net present value of estimated futurerestoration costs are charged to income during theperiod in which such changes occur. Estimatedrestoration costs are reviewed annually and discountedusing a pre-tax rate that reflects current marketassessments of the time value of money. The increasein restoration provisions due to the passage of timeis charged to net investment income.ONGOING REHABILITATION COSTSExpenditure on ongoing rehabilitation costs isrecognised as an expense when incurred.PLATINUM PRODUCERS’ENVIRONMENTAL TRUSTThe Group makes annual contributions to thePlatinum Producers’ Environmental Trust, which wascreated to fund the estimated cost of pollution control,rehabilitation and mine closure at the end of the livesof the Group’s mines. Contributions are determinedon the basis of the estimated environmental obligationover the life of a mine. Income earned on monies paidto the Trust is accounted for as net investment income.144

16. Borrowing costsBorrowing costs relating to capital expenditure arecapitalised in the period in which they are incurred.Borrowing costs relating to operating expenditureare charged to net investment income.17. Employee benefitsSHORT-TERM EMPLOYEE BENEFITSRemuneration to employees in respect of servicesrendered during a reporting period is recognised asan expense in that reporting period. Provision ismade for accumulated leave.EQUITY COMPENSATION PLANSWhere employees exercise options in terms of therules and regulations of the Anglo American PlatinumCorporation Limited share option scheme, shares areissued to participants as beneficial owners. Thedirectors procure a listing of these shares on theprimary stock exchange on which the Company’sshares are listed and quoted. In exchange, employeesentitled to such share options pay in cash aconsideration equal to the option price allocated tothem. The nominal value of shares issued is creditedto share capital and the difference between thenominal value and the option price is credited toshare premium.TERMINATION BENEFITSTermination benefits are charged against incomewhen the Group is committed to terminating theemployment of an employee or group of employeesbefore their normal retirement date.POST-EMPLOYMENT BENEFITSDefined benefit plansPension fundThe current service cost in respect of the definedbenefit plan is recognised as an expense in thecurrent period. Past service costs, experienceadjustments, the effects of changes in actuarialassumptions and the effect of plan amendments inrespect of existing employees are recognised as anexpense or income systematically over the expectedremaining service period of those employees. Thefund is actuarially valued every three years usingthe projected unit credit method.Actuarial gains and losses are recognised as incomeor expenditure over the expected average remainingworking lives of the employees when thecumulative unrecognised actuarial gains or lossesexceed 10% of the defined benefit obligation andfair value of the plan assets.Post-retirement medical aid costsThe post-retirement medical aid liability isrecognised as an expense systematically over theexpected remaining service period of employeesusing the projected unit credit method.Independent actuarial valuations are conducted everythree years. Experience adjustments, the effects ofchanges in actuarial assumptions and the effects ofplanned amendments in respect of eligible employeesare recognised as an expense or income systematicallyover the remaining service period of those employees.Adjustments pertaining to retired employees arerecognised immediately as an expense.Between actuarial valuations, the provision is adjustedin accordance with rates supplied by the actuaries.Defined contribution plansRetirement, provident and pension fundsContributions to defined contribution plans in respectof services rendered during a reporting period arerecognised as an expense in that period.145

Income Statements" for the year ended 31 DecemberCOMPANYGROUP1999 2000 2000 1999Rm Rm Notes Rm RmGROSS SALES REVENUE 1 16 185,6 8 794,9Commissions paid 648,6 276,9NET SALES REVENUE 15 537,0 8 518,0COST OF SALES 6 675,8 5 338,7Cash operating costs 5 871,4 5 056,3On-mine costs 2 4 934,6 4 187,5Smelting costs 3 336,9 330,7Treatment and refining costs 4 599,9 538,1Amortisation of operating assets 5 395,8 304,5Increase in metal inventories (100,0) (239,7)Transfer from metal lease liability — (64,4)Other costs 6 508,6 282,0GROSS PROFIT ON METAL SALES 8 861,2 3 179,30,5 3,6 Other net income 7 593,5 56,0— — Net profit on disposal of mineral rights and investments 8 122,7 —— — Market development and promotional expenditure (180,2) (139,1)0,5 3,6 OPERATING PROFIT 9 397,2 3 096,21 371,1 4 033,5 Net investment income 9 295,6 120,6— — Income from associate 17 157,6 —1 371,6 4 037,1 PROFIT BEFORE TAXATION 10 9 850,4 3 216,830,8 193,9 Taxation 11 2 932,4 612,3NET PROFIT ATTRIBUTABLE TO ORDINARY1 340,8 3 843,2 SHAREHOLDERS 6 918,0 2 604,51 340,8 3 843,2 HEADLINE EARNINGS 6 795,3 2 604,5Weighted average number of ordinary shares in issue (millions) 216,3 215,5Earnings per share (cents) 12– Attributable (basic) 3 198,3 1 208,6– Headline 3 141,6 1 208,6– Diluted (attributable) 3 140,3 1 185,5– Diluted (headline) 3 084,6 1 185,5Dividends per share (cents) 2 410,0 700,0– Interim 710,0 275,0– Proposed/final 1 100,0 425,0– Proposed special 600,0 —Dividend cover (headline earnings before special dividend) 1,7 1,7Dividend cover (headline earnings after special dividend) 1,3 1,7RECONCILIATION BETWEEN ATTRIBUTABLEAND HEADLINE EARNINGSNet profit attributable to ordinary shareholders 6 918,0 2 604,5Adjustment:Net profit on disposal of mineral rights and investments (122,7) —HEADLINE EARNINGS 6 795,3 2 604,5146

Balance Sheets" as at 31 DecemberCOMPANYGROUP1999 2000 2000 1999Rm Rm Notes Rm RmAssetsNON-CURRENT ASSETS— — Property, plant and equipment 14 6 045,1 4 794,8Capital work-in-progress 15 1 845,0 1 633,0Platinum Producers’ Environmental Trust 16 53,3 39,4— — Investment in associate 17 277,1 —2 392,2 4 294,2 Investments 18 4,4 1,0— — Non-current receivable 19 193,2 —2 392,2 4 294,2 8 418,1 6 468,2620,9 358,4 CURRENT ASSETS 9 084,7 4 203,3Inventories 20 1 350,8 1 228,7614,4 326,7 Accounts receivable 21 1 611,1 760,10,7 Taxation5,8 31,7 Cash and cash equivalents 22 6 122,8 2 214,53 013,1 4 652,6 TOTAL ASSETS 17 502,8 10 671,5Equity and liabilitiesSHARE CAPITAL AND RESERVES21,6 21,7 Share capital 23 21,7 21,61 779,3 1 836,4 Share premium 1 836,4 1 779,3518,4 518,4 Non-distributable reserve 24 — 8,9616,5 2 002,3 Accumulated profits before proposed dividends 9 856,0 5 386,5616,1 1 965,9 Accumulated profits after proposed dividends 6 166,8 4 468,1(918,0) (3 652,8) Proposed dividends receivable from subsidiariesProposed ordinary dividend payable No. 96918,4 2 387,1 (1999: No. 94) 2 387,1 918,4— 1 302,1 Proposed special dividend payable 1 302,1 —2 935,8 4 378,8 SHAREHOLDERS’ EQUITY 11 714,1 7 196,3— — NON-CURRENT LIABILITIES 2 825,2 2 168,5— — Borrowings 25 19,3 34,0— — Deferred taxation 26 2 097,0 1 524,8Environmental rehabilitation obligation 27 148,8 127,9— — Employees’ service benefits 28 560,1 481,877,3 273,8 CURRENT LIABILITIES 2 963,5 1 306,777,3 80,7 Accounts payable 29 1 146,9 838,6193,1 Taxation 1 816,6 468,13 013,1 4 652,6 TOTAL EQUITY AND LIABILITIES 17 502,8 10 671,5147

Group Statement ofChange in Shareholders’ EquityNon-Share Share distributable Accumulatedcapital premium reserve profits TotalRm Rm Rm Rm RmBalance previously reported at 31 December 1998 21,5 1 726,2 8,9 3 367,0 5 123,6Change in accounting policy in respect of– Proposal for dividend No. 92 419,4 419,4– Provision for taxation (STC) 8,9 8,9Restated balance at 31 December 1998 21,5 1 726,2 8,9 3 795,3 5 551,9Net profit attributable to ordinary shareholders 2 604,5 2 604,5Dividends paid in cash (Note 13) (1 013,3) (1 013,3)Share capital issued 0,1 53,1 53,2Restated balance at 31 December 1999 21,6 1 779,3 8,9 5 386,5 7 196,3Net profit attributable to ordinary shareholders 6 918,0 6 918,0Dividends paid in cash (Note 13) (2 457,4) (2 457,4)Share capital issued 0,1 57,1 57,2Transfer (8,9) 8,9 —BALANCE AT 31 DECEMBER 2000 21,7 1 836,4 — 9 856,0 11 714,1Company Statement ofChange in Shareholders’ EquityNon-Share Share distributable Accumulatedcapital premium reserve profits TotalRm Rm Rm Rm RmBalance previously reported at 31 December 1998 21,5 1 726,2 518,4 281,0 2 547,1Change in accounting policy in respect of– Proposal for dividend No. 92 419,4 419,4– Dividends proposed from subsidiary companies (411,4) (411,4)Restated balance at 31 December 1998 21,5 1 726,2 518,4 289,0 2 555,1Net profit attributable to ordinary shareholders 1 340,8 1 340,8Dividends paid in cash (Note 13) (1 013,3) (1 013,3)Share capital issued 0,1 53,1 53,2Restated balance at 31 December 1999 21,6 1 779,3 518,4 616,5 2 935,8Net profit attributable to ordinary shareholders 3 843,2 3 843,2Dividends paid in cash (Note 13) (2 457,4) (2 457,4)Share capital issued 0,1 57,1 57,2BALANCE AT 31 DECEMBER 2000 21,7 1 836,4 518,4 2 002,3 4 378,8148

Cash Flow Statements" for the year ended 31 DecemberCOMPANYGROUP1999 2000 2000 1999Rm Rm Notes Rm RmCASH FLOWS FROM / (USED IN)OPERATING ACTIVITIESCash receipts from customers 14 787,4 8 435,0Cash paid to suppliers and employees (5 869,1) (5 200,1)(376,7) 294,7 Cash from/(used in) operations 32 8 918,3 3 234,9— — Interest paid (6,8) (18,9)(30,9) (0,1) Taxation paid 33 (962,7) (243,4)(407,6) 294,6 Net cash from/(used in) operating activities 7 948,8 2 972,6CASH FLOWS (USED IN) / FROMINVESTING ACTIVITIES— — Purchase of property, plant and equipment 34 (1 919,7) (1 472,9)— — To maintain operations (569,3) (472,6)To expand operations (1 350,4) (1 000,3)— — Proceeds from sale of plant and equipment 31,0 24,7— (3,9) Other investments acquired (3,1) —— — Investment in associate (107,0) —0,3 7,4 Interest received 302,7 132,9Growth in Platinum Producers’ Environmental Trust 4,6 4,0— — Dividends received from associate 60,9 —1 370,8 2 128,0 Dividends received 3,9 9,21 371,1 2 131,5 Net cash (used in) / from investing activities (1 626,7) (1 302,1)CASH FLOWS USED IN FINANCINGACTIVITIES0,1 0,1 Proceeds from issuance of share capital 0,1 0,153,1 57,1 Increase in share premium 57,1 53,1— — Decrease in borrowings (13,6) (25,4)— — Payment of long-term borrowings (13,6) (10,4)— — Payment of finance lease liability — (15,0)(1 013,3) (2 457,4) Dividends paid 13 (2 457,4) (1 013,3)(960,1) (2 400,2) Net cash used in financing activities (2 413,8) (985,5)3,4 25,9 Net increase in cash and cash equivalents 3 908,3 685,02,4 5,8 Cash and cash equivalents at beginning of year 2 214,5 1 529,55,8 31,7 Cash and cash equivalents at end of year 22 6 122,8 2 214,5149

United States Dollar EquivalentIncome Statement" for the year ended 31 DecemberGROUP2000 1999US$m US$mGROSS SALES REVENUE 2 340,8 1 443,3Commissions paid 93,8 45,4NET SALES REVENUE 2 247,0 1 397,9COST OF SALES 965,5 876,2Cash operating costs 849,2 829,8On-mine costs 713,7 687,2Smelting costs 48,7 54,3Treatment and refining costs 86,8 88,3Amortisation of operating assets 57,2 50,0Increase in metal inventories (14,5) (39,3)Transfer from metal lease liability — (10,6)Other costs 73,6 46,3GROSS PROFIT ON METAL SALES 1 281,5 521,7Other net income 85,8 9,2Net profit on disposal of mineral rights and investments 17,7 —Market development and promotional expenditure (26,1) (22,8)OPERATING PROFIT 1 358,9 508,1Net investment income 42,8 19,8Income from associate 22,8 —PROFIT BEFORE TAXATION 1 424,5 527,9Taxation 424,1 100,5NET PROFIT ATTRIBUTABLE TO ORDINARY SHAREHOLDERS 1 000,4 427,4Dividends (355,4) (166,3)Exchange rate translation adjustment (219,1) (31,2)Accumulated profits at beginning of year 875,2 645,3ACCUMULATED PROFITS AT END OF YEAR 1 301,1 875,2Average R/US$ exchange rate 6,9145 6,0936Weighted average number of ordinary shares in issue (millions) 216,3 215,5Earnings per share (cents)– Attributable 462,5 198,3– Headline 454,3 198,3Income statement items were converted at the average exchange rate for the year.150

United States Dollar EquivalentBalance Sheet" as at 31 DecemberGROUP2000 1999US$m US$mAssetsNON-CURRENT ASSETSProperty, plant and equipment 798,0 779,0Capital work-in-progress 243,6 265,3Platinum Producers’ Environmental Trust 7,0 6,4Investment in associate 36,6 —Investments 0,6 0,2Non-current receivable 25,5 —1 111,3 1 050,9CURRENT ASSETS 1 199,2 682,9Inventories 178,3 199,6Accounts receivable 212,6 123,5Cash and cash equivalents 808,3 359,8TOTAL ASSETS 2 310,5 1 733,8Equity and liabilitiesSHARE CAPITAL AND RESERVESShare capital 2,9 3,5Share premium 242,4 289,1Non-distributable reserve — 1,4Accumulated profits before proposed dividends 1 301,1 875,2Accumulated profits after proposed dividends 814,1 726,0Proposed ordinary dividend payable No. 96 (1999: No. 94) 315,1 149,2Proposed special dividend payable 171,9 —SHAREHOLDERS’ EQUITY 1 546,4 1 169,2NON-CURRENT LIABILITIES 372,8 352,3Borrowings 2,5 5,5Deferred taxation 276,8 247,7Environmental rehabilitation obligation 19,6 20,8Employees’ service benefits 73,9 78,3CURRENT LIABILITIES 391,3 212,3Accounts payable 151,5 136,3Taxation 239,8 76,0TOTAL EQUITY AND LIABILITIES 2 310,5 1 733,8Closing R/US$ exchange rate 7,5750 6,1547Balance sheet items have been converted at the closing rate.151

United States Dollar EquivalentCash Flow Statement" for the year ended 31 DecemberGROUP2000 1999US$m US$mCASH FLOWS FROM OPERATING ACTIVITIESCash receipts from customers 2 138,6 1 384,2Cash paid to suppliers and employees (848,8) (853,3)Cash from operations 1 289,8 530,9Interest paid (1,0) (3,1)Taxation paid (139,2) (39,9)Net cash from operating activities 1 149,6 487,9CASH FLOWS USED IN INVESTING ACTIVITIESPurchase of property, plant and equipment (277,6) (241,8)To maintain operations (82,3) (77,6)To expand operations (195,3) (164,2)Proceeds from sale of plant and equipment 4,5 4,1Other investments acquired (0,4) —Investment in associate (15,5) —Interest received 43,8 21,8Growth in Platinum Producers’ Environmental Trust 0,7 0,7Dividends received from associate 8,8 —Dividends received 0,6 1,5Net cash used in investing activities (235,1) (213,7)CASH FLOWS USED IN FINANCING ACTIVITIESProceeds from issuance of share capital —* —*Increase in share premium 8,3 8,7Decrease in borrowings (2,0) (4,2)Payment of long-term borrowings (2,0) (1,7)Payment of finance lease liability — (2,5)Dividends paid (355,4) (166,3)Net cash used in financing activities (349,1) (161,8)Net increase in cash and cash equivalents 565,4 112,4Exchange difference (116,9) (12,7)Cash and cash equivalents at beginning of year 359,8 260,1Cash and cash equivalents at end of year 808,3 359,8* = Less than US$50 000152

Value Added Statement" for the year ended 31 DecemberValue addedGROUP2000 1999Notes % Rm % RmNet sales revenue 15 537,0 8 518,0Less: Purchase of goods and services needed to operatethe mines and produce refined metal (3 171,3) (2 534,2)Value added by operations 98 12 365,7 98 5 983,8Income from investments and interest received 2 311,2 2 146,1100 12 676,9 100 6 129,9Value distributedSALARIES, WAGES AND OTHER BENEFITSNET OF PAYE AND SITE 19 2 462,7 34 2 108,9Salaries, wages and other benefits 38 2 969,7 2 549,9PAYE and SITE (507,0) (441,0)GOVERNMENT 23 2 852,6 17 1 050,9South Africa 2 507,6 980,3Foreign 345,0 70,6PROVIDERS OF CAPITAL 19 2 464,2 17 1 032,2Financing costs 9 6,8 18,9Dividends 13 2 457,4 1 013,3TOTAL VALUE DISTRIBUTED 7 779,5 4 192,0Reinvested in the Group 39 4 897,4 32 1 937,9Amortisation and depreciation 10 436,8 346,7Retained income 4 460,6 1 591,2100 12 676,9 100 6 129,92000 199939%19%32%34%19%23%17%17%Salaries, wages and other benefitsGovernmentProviders of capitalReinvested in the Group153

Notes to theFinancial Statements" for the year ended 31 DecemberCOMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm1. Gross sales revenueSales revenue emanating from the following principal regions:Precious metals 14 851,4 7 912,9North America 1 398,8 3 481,7Asia 5 170,1 2 073,2Europe 7 144,9 2 247,3Africa 1 137,6 110,7Base metals 1 290,9 816,5Asia 38,7 57,1Europe 116,2 400,1Africa 1 110,2 334,8Other 25,8 24,5OtherAfrica 43,3 65,516 185,6 8 794,92. On-mine costsOn-mine costs comprise mining and concentrating costsexcluding amortisation of property, plant and equipmentand consist of the following principal categories:Labour 2 387,8 2 042,6Stores 1 348,3 1 157,2Utilities 386,4 344,4Sundry on-mine costs 772,5 605,8Provision for restoration 3,7 15,5Provision for post-retirement medical aid 35,9 22,04 934,6 4 187,53. Smelting costsSmelting costs excluding amortisation of property, plantand equipment consist of the following principal categories:Labour 80,2 82,9Stores 117,3 119,0Utilities 83,8 78,7Sundry smelting costs 51,9 46,9Provision for restoration 0,1 1,3Provision for post-retirement medical aid 3,6 1,9336,9 330,7154

COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm4. Treatment and refining costsTreatment and refining costs excluding amortisation ofproperty, plant and equipment consist of the followingprincipal categories:Labour 220,3 187,1Stores 191,5 198,4Utilities 38,9 37,9Sundry treatment and refining charges 71,3 75,5Toll refining 72,0 35,5Provision for restoration 2,0 1,9Provision for post-retirement medical aid 3,9 1,8599,9 538,15. Amortisation of operating assetsAmortisation of mining property, plant and equipmentconsist of the following categories:Mining 323,9 239,8Smelting 31,9 28,4Treatment and refining 37,5 33,9Decommissioning asset 2,5 2,4Note 14 395,8 304,56. Other costsOther costs consist of the following principal categories:Corporate costs 112,8 88,8Operations research 102,7 57,2Transport of metals 40,3 35,8Royalties paid 131,1 57,3Exploration 64,7 16,2Donations to educational and community development 33,0 17,7Other 24,0 9,0508,6 282,07. Other net incomeOther net income consists of the following principal categories:— — Gain on translation of foreign operations 226,2 15,7Profit on financial instruments 6,2 0,1— 4,6 Gain on foreign exchange transactions 331,2 20,4Royalties received 14,2 6,9Profit on sale of non-mining plant and equipment 4,1 0,90,5 (1,0) Other – net 11,6 12,00,5 3,6 593,5 56,0155

Notes to theFinancial Statements" for the year ended 31 December (continued)COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm8. Net profit on disposal of mineral rightsand investmentsDisposal of mineral rights (note 17) 120,1 —— — Disposal of investments 2,6 —— — 122,7 —9. Net investment incomeNet investment income consists of thefollowing principal categories:0,3 7,4 Interest received 302,7 132,91 370,8 4 026,1 Dividends received 3,9 9,2Growth in Platinum Producers’ Environmental Trust 4,6 4,0Transfer of time value of money adjustment toenvironmental rehabilitation obligation (note 27) (8,8) (6,6)Decommissioning (5,6) (6,6)Restoration (3,2)— — Interest paid (6,8) (18,9)1 371,1 4 033,5 295,6 120,610. Profit before taxationProfit before taxation is arrivedat after taking account of:Auditors’ remunerationAudit fees 2,4 1,6Other services 0,3 —Amortisation (note 14) 395,8 304,5Owned assets 393,3 302,1Decommissioning asset 2,5 2,4Depreciation (note 14) 41,0 42,2Operating lease charges 8,9 7,3Profit on sale of plant and equipment 4,1 2,7Mining — 1,8Non-mining 4,1 0,9Professional services 95,5 85,3Paid for services 160,5 141,9Less: capitalised (65,0) (56,6)156

COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm11. Ta x a t i o n30,8 193,9 Current taxation 2 319,3 566,8— — Deferred taxation 613,1 45,5— — Taxation rate adjustment — (211,3)— — Provision 613,1 256,830,8 193,9 Taxation for the year 2 932,4 612,3Comprising:0,1 48,0 South African normal taxation 2 163,0 432,4Mining 2 064,6 398,70,1 48,0 Non-mining 98,4 33,7State’s share of profit 196,1 43,00,1 — Secondary taxation on companies 228,3 66,330,6 145,9 Foreign and withholding taxation 345,0 70,630,8 193,9 2 932,4 612,3A reconciliation of the standard rate of South Africannormal taxation compared with that charged in the% % income statement is set out in the following table: % %30,0 30,0 South African normal taxation 30,0 30,0State’s share of profit 2,0 1,3— — Secondary tax on companies 2,3 2,130,0 30,0 34,3 33,4(27,8) (25,2) Dividends received (0,2) (0,1)— — Foreign income (4,2) (7,1)— — Capital profit (0,5) —— — Disallowed expenditure 0,1 1,3— — Taxation rate adjustment — (6,6)— — Other 0,3 (1,9)2,2 4,8 Effective taxation rate 29,8 19,0Unredeemed capital expenditure which is availablefor set-off against future taxable income from miningoperations, is as follows:Rustenburg Platinum Mines Limited — 547,9Potgietersrust Platinums Limited — 85,9Lebowa Platinum Mines Limited — 129,8— 763,6157

Notes to theFinancial Statements" for the year ended 31 December (continued)COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm12. Earnings per shareThe calculation of attributable (basic) and headlineearnings per share is based on earnings ofR6 918,0 million and R6 795,3 million respectively(December 1999: R2 604,5 million) and a weightedaverage of 216 290 800 (December 1999: 215 467 604)ordinary shares in issue during the year.The calculation of diluted earnings per share,attributable (basic) and headline, is based on earningsof R6 918,0 million and R6 795,3 million respectively(December 1999: R2 604,5 million) and a dilutedweighted average of 220 322 913 (December 1999:219 725 327) ordinary shares in issue during the year.The basis for calculating the diluted weightedaverage ordinary shares in issue is as follows:i) The weighted number of ordinary shares in issueto which is added –ii) The average number of ordinary options allocatedin terms of the share option scheme multiplied bythe weighted average option price divided by theaverage annual price of the ordinary shares on theJSE Securities Exchange South Africa.13. DividendsDividends paid in cash were as follows:419,4 Dividend No. 92 419,4Adjustments in respect of dividend No. 92 resultingfrom shares issued in terms of the Company’s shareoption scheme between 31 December 1998 and the0,4 last day to register for dividend No. 92 0,4593,5 Dividend No. 93 593,5918,4 Dividend No. 94 918,4Adjustments in respect of dividend No. 94 resultingfrom shares issued in terms of the Company’s shareoption scheme between 31 December 1999 and the0,4 last day to register for dividend No. 94 0,41 538,6 Dividend No. 95 1 538,61 013,3 2 457,4 2 457,4 1 013,3158

COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm14. Property, plant and equipmentMINING (ANNEXURE A)Mining property, plant and equipment compriseexpenditure on mineral rights, properties, shaftsinking, development, equipment, plant, buildings,decommissioning and mining projects, lessrecoupments.COSTOpening balance 6 237,2 5 278,0Transfer from capital work-in-progress (note 15) 1 645,4 967,2Disposals (10,9) (10,9)Present value of future decommissioning expansionprojects (note 27) 6,3 2,9Closing balance 7 878,0 6 237,2ACCUMULATED AMORTISATIONOpening balance 1 542,5 1 239,4Charge for the year (note 5 and 10) 395,8 304,5Disposals — (1,4)Closing balance 1 938,3 1 542,5Carrying amount – Mining (Annexure A) 5 939,7 4 694,7NON-MINING (ANNEXURE B)Non-mining property, plant and equipment comprisefreehold land, plant and equipment, motor vehiclesand office equipment.COST— — Opening balance 202,7 174,8— — Additions at cost 62,3 52,9— — Disposals (34,2) (25,0)— — Closing balance 230,8 202,7ACCUMULATED DEPRECIATION— — Opening balance 102,6 72,9— — Charge for the year (note 10) 41,0 42,2— — Disposals (18,2) (12,5)— — Closing balance 125,4 102,6— — Carrying amount – Non-mining (Annexure B) 105,4 100,1— — Total carrying amount 6 045,1 4 794,8159

Notes to theFinancial Statements" for the year ended 31 December (continued)COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm15. Capital work-in-progressOpening balance 1 633,0 1 180,2Additions at cost 1 857,4 1 420,0Transfer to mining property, plant and equipment(note 14) (1 645,4) (967,2)Closing balance 1 845,0 1 633,016. Platinum Producers’ Environmental TrustOpening balance 39,4 28,1Contributions 9,3 7,3Growth in Platinum Producers’ Environmental Trust 4,6 4,0Closing balance (note 27) 53,3 39,417. Investment in associateLISTED INVESTMENTThe Group obtained an initial 20% interest in NorthamPlatinum Limited (Northam) on 2 February 2000 inexchange for certain mineral rights on which a net profit ofR120,1 million (note 8) was made. A further acquisition of15,3 million shares in Northam representing 6,7% of theissued share capital of Northam was made on 13 March 2000.On 28 August 2000 Mvelaphanda Platinum (Proprietary)Limited (Mvela) acquired from the Group a 17,5% interestin Northam. In order to facilitate the empowermenttransaction, Anglo South Africa (Proprietary) Limitedonsold to Anglo Platinum the 13,3% interest in Northamwhich it had received as a consequence of the unbundlingof Gold Fields of South Africa Limited (note 19).As a result of the above transactions a profit of R2,3 millionwas realised on the sale of the Northam shares to Mvela.At 31 December 2000 the Group held 51 724 380 shares inNortham (22,5%). The carrying value net of goodwillamounted to R277,1 million (market value: R812,1 million).160

COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm17. Investment in associate (continued)The carrying value of the investment is made up of:— — Share of net assets acquired 448,9 —— — Negative goodwill (219,5) —— — At acquisition (231,1) —— — Amortisation 11,6 —— — Cost of acquiring the investment in associate 229,4 —— — Income from associate 157,6 —— — Net profit for the year 146,0 —— — Negative goodwill amortised 11,6 —— — Taxation (49,0) —— — Current (8,1) —— — Deferred (40,9) —— — Dividends received (60,9) —— — Carrying value 277,1 —The summarised pro forma financial statements ofNortham Platinum Limited for the 12 months ended31 December 2000 are outlined below:INCOME STATEMENT— — Gross sales revenue 1 373,6 —— — Net profit before taxation 656,8 —— — Taxation (226,5) —— — Net profit after taxation 430,3 —BALANCE SHEET— — Non-current assets 1 294,2 —— — Current assets 723,2 —— — Long-term provisions 7,1 —— — Current liabilities 111,2 —18. Investments— 3,9 Unlisted investments at cost 4,4 1,0Directors’ valuation: R4,4 million(December 1999: R1,0 million)Investment in wholly owned subsidiaries at cost2 392,2 4 290,3 (Annexure C)2 392,2 4 294,2 4,4 1,0161

Notes to theFinancial Statements" for the year ended 31 December (continued)COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm19. Non-current receivableAs set out in note 17 and in pursuance of enhancingempowerment in the mining industry, the Group concludedan empowerment transaction with Mvelaphanda Platinum(Proprietary) Limited (Mvela). Mvela acquired from theGroup 40 221 089 ordinary shares in Northam PlatinumLimited (Northam) representing a 17,5% interest inNortham. The consideration was settled partly in cashand partly in a secured loan repayable over 10 years.The outstanding amount bears interest, compounded— — monthly in arrears. 193,2 —20. InventoriesThe amounts attributable to the differentcategories are as follows:Refined metals 696,9 589,5At cost 657,1 541,6At net realisable values 39,8 47,9Work-in-process at cost 445,2 452,6Total metal inventories 1 142,1 1 042,1Stores and materials at cost 208,7 186,61 350,8 1 228,721. Accounts receivable— — Trade accounts receivable 1 265,6 516,0— — Related parties (note 31) 0,1 66,6— — Other 1 265,5 449,4102,0 10,0 Other receivable and prepaid expenses 345,5 244,1512,4 316,7 Subsidiary companies current accounts(Annexure C)614,4 326,7 1 611,1 760,122. Cash and cash equivalentsCash and cash equivalents consist of cash on hand,5,8 31,7 balances with banks and deposits on call. 6 122,8 2 214,5162

COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm23. Share capitalAuthorised40,0 40,0 400 000 000 Ordinary shares of 10 cents each 40,0 40,0Issued21,5 21,6 216 086 472 Ordinary shares of 10 cents each 21,6 21,50,1 0,1 925 829 Issued in terms of the share option scheme 0,1 0,121,6 21,7 217 012 301 Balance at 31 December 21,7 21,6The unissued shares are under the control of the directorsuntil the forthcoming annual general meeting.24. Non-distributable reserve518,4 518,4 General capital reserve — —— — Foreign currency translation reserve — 8,9518,4 518,4 — 8,925. Borrowings— — Ten-year variable rate facility (unsecured) 33,9 47,5Terms of repayment: six-monthly instalments whichcommenced on 20 February 1993 with a final instalmentpayable on 31 October 2002. Finance charges are calculatedmonthly in arrears. The current average interest rate is15,4% (31 December 1999: 15,5%) per annum.Less : short-term portion transferred to current liabilities— — (note 29) (14,6) (13,5)— — 19,3 34,026. Deferred taxationDeferred taxation liability is attributable to temporarydifferences relating to:— — Deferred taxation liabilities 2 307,5 1 672,7— — Mining property, plant and equipment 2 297,2 1 653,3— — Prepaid expenses 10,3 19,4— — Deferred taxation assets (210,5) (147,9)— — Provision for post-retirement medical aid benefit (87,1) (76,2)— — Provision for leave pay (81,0) (68,3)— — Other (42,4) (3,4)— — (Note 30) 2 097,0 1 524,8163

Notes to theFinancial Statements" for the year ended 31 December (continued)COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm27. Environmental rehabilitation obligationPROVISION FOR DECOMMISSIONING (note 30) 99,3 87,4Opening balance 87,4 77,9Movement for the year 11,9 9,5Present value of decommissioning of expansion projects(note 14) 6,3 2,9Charged to net investment income (note 9) 5,6 6,6PROVISION FOR RESTORATION (note 30) 49,5 40,5Opening balance 40,5 21,8Movement for the year 9,0 18,7Present value of increase in restoration obligation charged toincome statement 5,8 18,7Charged to net investment income (note 9) 3,2ENVIRONMENTAL REHABILITATIONOBLIGATION BEFORE FUNDING 148,8 127,9Less: Platinum Producers’ Environmental Trust (note 16) 53,3 39,4NET ENVIRONMENTAL REHABILITATIONOBLIGATION 95,5 88,5Future value of decommissioning obligation 666,3 574,0Future value of restoration obligation 82,6 40,528. Employees’ service benefits— — Provision for post-retirement medical aid benefits (note 30) 290,2 254,0— — Provision for leave pay (note 30) 269,9 227,8— — 560,1 481,829. Accounts payable— — Trade accounts 744,6 450,5— — Related parties (note 31) — 12,1— — Other 744,6 438,4— — Short-term portion of borrowings (note 25) 14,6 13,577,3 80,7 Other payables and accrued expenses 287,6 320,9— — Provision for bonuses (note 30) 100,1 53,777,3 80,7 1 146,9 838,6164

30.ProvisionsEnvironmental Environmentalrehabilitation- rehabilitation- Post-retirementDeferred decommissioning restoration medical aid2000 taxation obligation obligation benefits Leave pay BonusesRm Rm Rm Rm Rm RmNote 26 Note 27 Note 27 Note 28 Note 28 Note 29Opening balance 1 524,8 87,4 40,5 254,0 227,8 53,7Utilised during the year — — — (31,0) (272,6) (53,7)Provided during the year 572,2 11,9 9,0 67,2 314,7 100,1Closing balance 2 097,0 99,3 49,5 290,2 269,9 100,1Environmental Environmentalrehabilitation- rehabilitation- Post-retirementDeferred decommissioning restoration medical aid1999 taxation obligation obligation benefits Leave pay BonusesRm Rm Rm Rm Rm RmNote 26 Note 27 Note 27 Note 28 Note 28 Note 29Opening balance 1 479,3 77,9 21,8 227,0 177,0 —Rate adjustment (211,3)Utilised during the year — — — — (178,8) —Provided during the year 256,8 9,5 18,7 27,0 229,6 53,7Closing balance 1 524,8 87,4 40,5 254,0 227,8 53,731. Related party transactionsThe Company and its subsidiaries, in the ordinary course of business, enter into various sales, purchase and service transactionswith its principal shareholder, Anglo American plc, its subsidiaries, joint ventures and associates. These transactions areconcluded at arm’s length. Material related party transactions were as follows:Sale of goods Purchase of goods Amount owed by Amount owed tofor the year ended for the year ended related parties at related parties at31 December 31 December 31 December 31 December2000 1999 2000 1999 2000 1999 2000 1999Rm Rm Rm Rm Rm Rm Rm Rm581,4 1 146,0 208,4 394,9 0,1 66,6 — 12,1Note 21 Note 21 Note 29 Note 29Directors:Details relating to Directors’ emoluments and equity compensation benefits are disclosed in note 38 and Annexure D.Shareholders:The principal shareholders of the Company are detailed in note 41 “Analysis of shareholders”.165

Notes to theFinancial Statements" for the year ended 31 December (continued)COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm32. Reconciliation of profit beforetaxation to cash from/(used in)operations1 371,6 4 037,1 Profit before taxation 9 850,4 3 216,8Adjustments for:(1 370,8) (4 026,1) Dividends received (3,9) (9,2)(0,3) (7,4) Interest received (302,7) (132,9)Growth in Platinum Producers’ Environmental Trust (4,6) (4,0)— — Interest paid 6,8 18,9— — Amortisation and depreciation of property, plant and equipment 436,8 346,7— — Profit on sale of plant and equipment (4,1) (2,7)— — Net profit on disposal of mineral rights and investments (122,7) —— — Income from associate (157,6) —0,5 3,6 9 698,4 3 433,6— — MOVEMENT IN NON-CURRENT ITEMS (114,2) 91,8— — Increase in employees’ service benefits 78,3 77,8Addition to decommissioning asset (6,3) (2,9)Increase in Platinum Producers’ Environmental Trust (13,9) (11,3)— — Increase in non-current receivable (193,2) —Increase in provision for environmental rehabilitationobligation 20,9 28,2(377,2) 291,1 WORKING CAPITAL CHANGES (665,9) (290,5)Increase in metal inventories (100,0) (239,7)Increase in stores and materials (22,1) (39,7)(376,9) 287,7 (Increase)/decrease in accounts receivable (851,0) (32,5)(0,3) 3,4 Increase/(decrease) in accounts payable 307,2 21,4(376,7) 294,7 8 918,3 3 234,933. Taxation paid(0,6) (0,7) Amount unpaid/(overpaid) at beginning of year 468,1 144,7Current taxation provided (excluding current30,8 193,9 taxation of associate) 2 311,2 566,8Group (note 11) 2 319,3 566,8Associate (note 17) (8,1) —0,7 (193,1) Amount (unpaid)/overpaid at end of year (1 816,6) (468,1)30,9 0,1 Payments made 962,7 243,4166

COMPANYGROUP1999 2000 2000 1999Rm Rm Rm Rm34. Purchase of property, plantand equipmentAdditions to mining capital work-in-progress(note 15) 1 857,4 1 420,0Additions to non-mining property, plant and equipment(note 14) 62,3 52,91 919,7 1 472,935. Segmental informationThe Group is primarily a platinum group metalsproducer operating geographically in South Africa. Allmetals produced result from the same indistinguishableprocess from which platinum group metals are produced.The segmental analysis of gross sales revenue is outlinedbelow:Platinum 7 131,6 4 521,1Palladium 4 560,6 2 181,6Rhodium 2 645,4 911,1Nickel 1 105,4 681,7Other 742,6 499,4Gross sales revenue (note 1) 16 185,6 8 794,92000 199916%7%5%44%10%8%6%28%25%51%PlatinumPalladiumRhodiumNickelOther167

Notes to theFinancial Statements" for the year ended 31 December (continued)GROUP2000 1999RmRm36. CommitmentsMining property, plant and equipmentContracted for 486,3 501,3Not yet contracted for 3 494,0 1 323,3Authorised by the directors 3 980,3 1 824,6Allocated for expansion of capacity 3 040,4 926,9– within one year 1 623,1 689,4– thereafter 1 417,3 237,5Maintenance of capacity 939,9 897,7– within one year 421,0 489,0– thereafter 518,9 408,7OtherOperating lease rentals – premises 54,4 63,4Due within one year 10,3 9,2Due within two to five years 44,1 49,2Thereafter — 5,0Information Technology Service Providers 259,5 366,9Due within one year 58,6 67,4Due within two to five years 156,4 217,6Thereafter 44,5 81,9These commitments will be funded from existing cash resources, borrowings and futurecash flows.37. Contingent liabilitiesGuarantees and suretyshipsLoans granted to employees in respect of housing loans 5,6 5,8Environmental obligations in respect of uncommissioned expansion projects 1,1 —The Company has issued a letter of comfort to First National Bank Limited in respectof the variable rate facility referred to in note 25. In addition, letters of comfort havebeen issued to financial institutions to cover certain banking facilities. There are noencumbrances of Group assets.Standard Corporate Merchant Bank holds a put option against the Group in respect ofand to the extent that finance was provided to Mvelaphanda Platinum (Proprietary)Limited (Mvela) for the acquisition of certain Northam Platinum Limited (Northam)shares. The Group holds a concomitant call option against Mvela. A potential liabilitymay arise in the event that Mvela fails to meet its contractual obligations and the shareprice of the underlying Northam shares, held as security by the Group, falls belowR4,79 per share.168

GROUP31 December 31 December2000 199938. Employee benefitsNUMBER OF PERMANENT EMPLOYEESMining 39 539 36 678– At work 33 356 30 811– On leave, in training and on capital projects 6 183 5 867Process 1 691 1 689Shared services 99 35Central office 218 238– Operations office 119 137– Corporate office 99 101Total Group employees at 31 December 41 547 38 640RmRmAGGREGATE EARNINGSThe aggregate earnings of employees including directors were:Salaries and wages and other benefits 2 684,4 2 366,7Retirement benefit costs 230,2 151,8Medical aid contributions 55,1 31,42 969,7 2 549,9DIRECTORS’ EMOLUMENTSRemuneration as executives– Fees 0,2 0,2– Salaries, benefits, performance-related bonuses and other emoluments 15,4 11,1Remuneration as non-executives– Fees 0,2 0,2– Other emoluments 0,1 0,115,9 11,6Profit on share options exercised 39,0 17,5TERMINATION BENEFITSRetrenchment benefits paid and expensed 24,6 15,1169

Notes to theFinancial Statements" for the year ended 31 December (continued)38. Employee benefits (continued)EQUITY COMPENSATION BENEFITSThe Directors’ Report sets out details of the Company’s Share Option Scheme and Annexure D provides details of share optionsissued and exercised during the year by participants.RETIREMENT FUNDSSeparate funds, independent of the Group, provide retirement and other benefits to all employees. These funds consist ofdefined contribution plans and a defined benefit plan. All funds are subject to the Pension Funds Act, 1956.Defined contribution plansContributions are made to the following defined contribution plans:Number of Number of Employer Market valuemembers* pensioners contributions of fund assets2000 Rm RmAnglo Platinum Retirement Fund† 379 13,6 140,2Anglo Platinum Mines Retirement Fund† 4 116 60,8 559,7MRR Retirement Fund† 758 8,5 152,6Anglo Platinum Group Provident Fund 35 249 61,0 531,3Anglo Platinum Officials Pension Fund 30 1 396 0,6 597,4Anglo Platinum Employees Pension Fund 44 1 261 0,5 402,340 576 2 657 145,0 2 383,51999Anglo Platinum Retirement Fund† 305 12,0 133,9Anglo Platinum Mines Retirement Fund† 4 082 55,8 510,4MRR Retirement Fund† 777 8,1 136,8Anglo Platinum Group Provident Fund 35 839 47,8 381,4Anglo Platinum Officials Pension Fund 34 1 421 0,6 578,9Anglo Platinum Employees Pension Fund 45 1 282 0,5 407,341 082 2 703 124,8 2 148,7*Certain members are not in the employment of the Group whilst some employees are members of funds not under the control of the Group. Certain members are members of morethan one fund.†With effect from 1 July 1999 the above funds have provided their members with the choice of selecting an appropriate investment risk profile that best suits their individual needs.These funds currently offer the following categories of investment portfolios:Aggressive growth;Balanced growth;Conservative growth; andA specialist portfolio.The specialist portfolio consists of a fully vested guaranteed product, a money market fund and an offshore fund. Two multi-asset managers manage the investment portfolios.In addition to the multi-asset managers, six professional asset managers from the asset management industry manage the benefit funds’ investments.170

38. Employee benefits (continued)Defined benefit planThe MRR Pension Fund requires actuarial valuation every three years by an independent firm of consulting actuaries. The fundwas last valued at 31 December 1997. The valuation at 31 December 2000 is in progress.The provisional actuarial assessment at 31 December 2000 determined the actuarial liability for all pensioners and members andthe actuarial value of the assets of the fund using the projected unit credit method. The following principal actuarialassumptions were applied:31 December 31 December2000 1999ACTUARIAL ASSUMPTIONSAnnual discount rate 11,8% 15,0%Expected return on plan investments (per annum) 13,0% 15,0%Salary escalation rate (per annum) 9,3% 12,5%Annual pension increases 7,5% 9,5%MEMBERSHIPMembership of the MRR Pension Fund was as follows:Active members 41 42Deferred members 31 35Pensioners 205 232FUND STATUS Rm RmThe provisional funded status of the MRR Pension Fund was as follows:Fair value of plan assets 153,0 156,6Domestic equities 87,4 87,8Foreign equities 31,1 27,7Domestic fixed interest 16,3 19,4Foreign fixed interest 7,6 2,2Property 2,1 3,1Cash 8,5 16,4Present value of funded obligation 115,6 108,4Net asset 37,4 48,2Cumulative unrecognised actuarial gains 4,0 2,4Cumulative unrecognised transitional asset (32,0) (37,0)Cumulative pre-paid pension cost 9,4 13,6As a result of the ongoing debate as to the ownership of a surplus in South Africanpension funds, the surplus in the fund has not been recognised as an asset.PENSION COSTCurrent service cost 1,3 1,2Interest cost 16,0 14,7Expected returns on plan assets (23,1) (17,3)Pension cost (5,8) (1,4)Employer contribution 0,8 0,8171

Notes to theFinancial Statements" for the year ended 31 December (continued)38. Employee benefits (continued)Post-retirement medical aid benefitsThe accumulated post-retirement medical aid obligation and the annual cost of these benefits were calculated by independentconsulting actuaries at 30 June 2000 and revised at 31 December 2000 using the projected unit credit method. The assumptionsused in the valuation included estimates of life expectancy and long-term estimates of the increase in medical costs, appropriatediscount rates and the level of claims based on the Group’s experiences.Subsequent to the actuarial valuation at 30 June 2000, the Group established its own Health Maintenance Organisation (HMO)which will provide post-retirement medical aid to its employees. The HMO will provide high-quality health care services toretirees with a reduction in cost as it is a closed operation and external inflationary pressures are expected to reduce. Certain groupsof employees at various business units have agreed to participate in the HMO with effect from 1 January 2001 which resulted ina decrease of R31,0 million in the provision for post-retirement medical aid benefits.In the revised valuation of the independent actuaries at 31 December 2000, the effect of the HMO was taken into account and theunfunded actuarial liability was determined at R290,2 million (note 30) (31 December 1999: R254,0 million). The net provisionmade during the year amounted to R36,2 million (note 30) (R27,0 million for the year ended 31 December 1999).2000 1999The principal actuarial assumptions used were as follows:Health care cost inflation per annum 12% 12%Annual discount rate 15% 15%39. Risk managementThe Group does not trade in financial instruments but, in the normal course of its operations, the Group is exposed to currency,metal price, investment, credit and liquidity risk. In order to manage these risks, the Group may enter into transactions which makeuse of financial instruments. The Group has developed a comprehensive risk management process to facilitate, control, andmonitor these risks. This process includes formal documentation of policies, including limits, controls and reporting structures.CONTROLLING RISK IN THE GROUPThe Executive Committee and the risk sub-committee are responsible for risk management activities within the Group. Overall limitshave been set by the Board. The Executive Committee is responsible for setting individual limits. In order to ensure adherence tothese limits, activities are marked to market on a daily basis and reported to the Group treasurer. The risk sub-committee, composed ofmarketing and treasury executives, meet weekly to review market trends and develop strategies to be submitted for ExecutiveCommittee approval. The treasury is responsible for managing investment, currency and liquidity risk within the limits andconstraints set by the Board. The marketing department is responsible for managing metal price risk, also within the laid-down limitsand constraints set by the Board.CURRENCY RISKThe Group operates in the global business environment and many transactions are priced in a currency other than South Africanrand. Accordingly the Group is exposed to the risk of fluctuating exchange rates and seeks to actively manage this exposurethrough the use of financial instruments. These instruments typically comprise forward exchange contracts and options. Forwardcontracts are the primary instruments used to manage currency risk. Forward contracts require a future purchase or sale offoreign currency at a specified price.Current policy prevents the use of option contracts without Executive Committee approval. Options provide the Group with theright but not the obligation to purchase (or sell) foreign currency at a pre-determined price, on or before a future date. Fewcontracts of this nature were entered into during the year, and no such contracts are in existence at year-end.FORWARD EXCHANGE CONTRACTS2000Principal of forward exchange contracts(i.e. nominal amount in ZAR)Maturing withinCurrency twelve months AverageRmratesPurchases Sales Purchases SalesUnited States dollar 18,9 76,1 6,2794 7,6122Italian lire 3,9 0,0038Japanese yen 104,4 0,0745Deutschmark 0,4 3,5251Euro 154,0 6,7463British pound 5,3 11,4277Australian dollar 25,7 4,1754Canadian dollar 0,2 5,0125Total 312,8 76,1172

39. Risk management (continued)FORWARD EXCHANGE CONTRACTS1999Principal of forward exchange contracts(i.e. nominal amount in ZAR)Maturing withinCurrency twelve months AverageRmratesPurchases Sales Purchases SalesUnited States dollar 65,9 105,1 6,2245 6,1802Italian lire 9,9 0,0034Japanese yen 9,4 0,0605Deutschmark 7,9 3,3333Euro 3,5 6,5708British pound 2,3 10,0000Australian dollar 1,7 3,9526Finnish mark 1,0 1,0282Total 101,6 105,1METAL PRICE RISKMetal price risk arises from the risk of an adverse effect on current or future earnings resulting from fluctuations in metal prices.The ability to place forward contracts is restricted owing to the limited size of the financial market in platinum group metals.Nonetheless, the Group places contracts where opportunities present themselves whereby management seek to increase/reducethe exposure to metal price fluctuations. Historically, management has made use of forward contracts to manage this exposure.Forward contracts enable the Group to obtain a pre-determined price for delivery at a future date. There were no open positionsat year end.INVESTMENT AND LIQUIDITY RISKThere are no interest rate sensitive liabilities at year end. Fluctuations in interest rates impact on the value of short-term cashinvestments, giving rise to interest rate risk. Other than ensuring optimum money market rates for deposits, the Group does notmake use of financial instruments to manage this risk. Formal policies, procedures and limits have been put in place forderivative instruments.Amount at Rate at Amount at Rate at31 December 31 December 31 December 31 DecemberPeriod (days) 2000 2000 1999 1999less than Rm % Rm %30 4 094,1 10,35 1 585,4 12,5060 1 139,6 10,48 598,4 11,9090 889,1 10,48 30,7 11,80Total 6 122,8 2 214,5Liquidity risk is the risk that the Group will be unable to meet a financial commitment in any location or currency. This risk isminimised through the holdings of cash balances and banking facilities. In addition, detailed cash flows are regularly preparedand reviewed by treasury. The cash needs of the Group are managed according to its requirements.CREDIT RISKCredit risk arises from the risk that a counterparty may default or not meet its obligations timeously. The Group minimisescredit risk by ensuring that counterparties are banking institutions of the highest quality. Where possible, management ensuresthat netting agreements are in place. Counterparty limits are reviewed annually by the Executive Committee.Trade accounts receivable involve a small group of international companies. The financial condition of these companies and thecountries they operate in are regularly reviewed.173

Notes to theFinancial Statements" for the year ended 31 December (continued)39. Risk management (continued)FAIR VALUE OF FINANCIAL INSTRUMENTSCarrying amountFair valueat 31 Decemberat 31 DecemberType of instrument 2000 1999 2000 1999Rm Rm Rm RmCash and cash equivalents 6 122,8 2 214,5 6 122,8 2 214,5Accounts receivable 1 611,1 760,1 1 611,1 760,1Accounts payable 1 146,9 838,6 1 146,9 838,6Forward exchange contracts:Purchases 305,1 101,0 305,1 101,0Sales 76,6 104,8 76,6 104,8Cash and cash equivalents:The carrying amounts approximate fair value because of the short maturity of these instruments.Accounts receivable and accounts payable:The carrying amounts approximate fair value because of the short maturity of these instruments.Forward exchange contracts:Forward exchange contracts are valued using a forward curve generated by market rates at year end.2000 199940. Exchange rates to South African randYear-end rates:US dollar 7,5750 6,1547British pound 11,3148 9,9595Japanese yen 0,0661 0,0599Average rates for the year:US dollar 6,9145 6,0936British pound 10,4677 9,8605Japanese yen 0,0641 0,053841. Analysis of shareholdersAn analysis of the share register at year end showed the following:2000 1999Number of Percentage of Number of Percentage ofSIZE OF SHAREHOLDING shareholders issued capital shareholders issued capital1 – 1 000 6 491 0,42 10 578 0,501 001 – 10 000 563 0,70 1 089 0,9410 001 – 50 000 53 0,52 107 0,8850 001 – 100 000 4 0,11 11 0,33100 001 – 1 000 000 25 3,86 22 2,941 000 001 and over 12 94,39 16 94,417 148 100,00 11 823 100,00174

41. Analysis of shareholders (continued)2000 1999Number of Percentage of Number of Percentage ofCATEGORY OF SHAREHOLDER shareholders issued capital shareholders issued capitalCompanies 167 50,71 175 50,54Individuals 6 688 1,18 10 521 1,89Pension and provident funds 9 0,01 52 0,43Insurance companies 9 4,60 7 0,08Bank, nominee and finance companies 165 43,42 656 27,77Trust funds and investment companies 92 0,07 118 0,08Other corporate bodies 18 0,01 294 19,217 148 100,00 11 823 100,00SHAREHOLDER SPREADPublic shareholders 7 133 49,81 11 814 49,78Non-public shareholders– Directors 14 0,01 8 —– Persons interested, directly or indirectly in 10% or more 1 50,18 1 50,22MAJOR SHAREHOLDERS7 148 100,00 11 823 100,00According to the Company’s share register at year end, the following shareholders held shares equal to or in excess of 5% of theissued ordinary share capital of the Company:2000 1999NumberNumberof shares Percentage of shares PercentageAnglo South Africa (Proprietary) Limited 108 890 928 50,18 108 529 228 50,22First National Nominees (Proprietary) Limited 11 939 573 5,50 11 701 326 5,42Old Mutual (Proprietary) Limited 9 889 960 4,56 12 243 298 5,67Nedcor Bank Nominees (Proprietary) Limited 13 177 800 6,07 — —Standard Bank Nominees (Transvaal) (Proprietary) Limited 47 670 845 21,97 48 617 401 22,50PRINCIPAL CORPORATE SHAREHOLDERAnglo South Africa (Proprietary) Limited 108 890 928 50,18 108 529 228 50,22SECTION 140A(8)(a) DISCLOSUREAn analysis of shareholders (in terms of Section 140A(8)(a) of the Companies Act) revealed that, other than Anglo South Africa(Proprietary) Limited referred to above, no other individual shareholder beneficially held 5% or more of the Company’s issuedshare capital. However, the following non-resident nominee companies hold 5% or more of the issued share capital:(a) Chase Manhattan Bank – 10 975 985 shares (5,06%), and(b) Old Mutual plc – 16 190 398 shares (7,47%).GEOGRAPHICAL ANALYSIS OF SHAREHOLDERSResident shareholders held 110 989 907 shares (51,15%) and non-resident shareholders held 106 022 394 shares (48,85%) ofthe Companies’ issued share capital of 217 012 301 shares at 31 December 2000 (31 December 1999: 216 086 472).42. Hyperinflation reportingThe financial statements have not been restated to a current cost basis as the Group does not operate in a hyperinflationaryeconomy. Economic statistics relating to increases are as follows:2000 1999Headline consumer price index 5,32% 5,28%Core consumer price index 8,31% 7,91%Producers’ price index 9,13% 5,79%43. Comparative figuresWhere appropriate, comparative figures have been restated to facilitate improved disclosure.175

Notes to theFinancial Statements" for the year ended 31 December (continued)Annexure AMINING PROPERTY, PLANT AND EQUIPMENT2000 1999Accumulated Carrying Accumulated CarryingCost amortisation amount Cost amortisation amountRm Rm Rm Rm Rm RmOwned assetsMining development andinfrastructure 2 312,3 511,8 1 800,5 1 582,7 411,7 1 171,0Plant and equipment 4 967,6 1 272,4 3 695,2 4 125,5 1 000,2 3 125,3Motor vehicles 433,8 123,4 310,4 380,2 105,9 274,3Office furniture and equipment 83,5 25,8 57,7 74,3 22,3 52,07 797,2 1 933,4 5 863,8 6 162,7 1 540,1 4 622,6Decommissioning asset 80,8 4,9 75,9 74,5 2,4 72,1Note 14 7 878,0 1 938,3 5 939,7 6 237,2 1 542,5 4 694,7The carrying amount of mining assets can be reconciled as follows:CarryingCarryingamountamountat beginningat end ofof the year Additions Disposals Amortisation the yearRm Rm Rm Rm RmOwned assetsMining development and infrastructure 1 171,0 740,5 10,9 100,1 1 800,5Plant and equipment 3 125,3 842,1 — 272,2 3 695,2Motor vehicles 274,3 53,6 — 17,5 310,4Office furniture and equipment 52,0 9,2 — 3,5 57,74 622,6 1 645,4 10,9 393,3 5 863,8Decommissioning asset 72,1 6,3 — 2,5 75,9Note 14 4 694,7 1 651,7 10,9 395,8 5 939,7176

Annexure BNON-MINING PROPERTY, PLANT AND EQUIPMENT31 December 31 December2000 1999Accumulated Carrying Accumulated CarryingCost depreciation amount Cost depreciation amountRm Rm Rm Rm Rm RmOwned assetsFreehold land 5,5 — 5,5 5,5 — 5,5Plant and equipment 58,5 40,7 17,8 54,3 29,6 24,7Motor vehicles 72,4 22,2 50,2 60,2 24,4 35,8Office furniture and equipment 94,4 62,5 31,9 82,7 48,6 34,1Note 14 230,8 125,4 105,4 202,7 102,6 100,1The carrying amount of non-mining assets can be reconciled as follows:CarryingCarryingamountamountat beginningat end ofof the year Additions Disposals Depreciation the yearRm Rm Rm Rm RmOwned assetsFreehold land 5,5 — — — 5,5Plant and equipment 24,7 4,2 — 11,1 17,8Motor vehicles 35,8 45,0 15,6 15,0 50,2Office furniture and equipment 34,1 13,1 0,4 14,9 31,9Note 14 100,1 62,3 16,0 41,0 105,4177

N o t e s to theFinancial Statements" for the year ended 31 December (continued)Annexure CINVESTMENTS IN WHOLLY OWNED SUBSIDIARIESNature ofbusinessDIRECT INVESTMENTSAnglo Platinum Limited (formerly Amplats Limited)Lebowa Platinum Mines LimitedPenultimate Holdings (Proprietary) LimitedPotgietersrust Platinums LimitedRustenburg Platinum Mines LimitedPMT Trading AG (i)Anglo Platinum (Isle of Man) Limited (formerly Amplats (Isle of Man)) (ii)INDIRECT INVESTMENTAnglo Platinum Management Services (Proprietary) Limited (formerly Amplats Management Services(Proprietary) Limited)EAnglo Platinum Shared Services Unit (Proprietary) Limited (formerly Amplats Shared Services Unit (Proprietary) Limited) EBafokeng-Rasimone Management Services (Proprietary) LimitedEBelvedere Limited (iii)EBleskop-Waterval Mining Management Services (Proprietary) Limited (formerly Nasset Investments(Proprietary) Limited)EBlinkwater Farms 244 KR (Proprietary) LimitedIBrakspruit Platinum (Proprietary) LimitedCDithaba Platinum (Proprietary) LimitedCEen van Twee Nul Vier Brooklyn (Eiendoms) BeperkIE. L. Ramsden Bleskop (Proprietary) Limited FEland Platinum Mining Company LimitedCGeluksanker Boerdery (Eiendoms) BeperkIJumeseco Properties (Proprietary) LimitedCLa Chaine D’Assurance Limited (iv)JMaandagshoek Platinum (Proprietary) LimitedCMatthey Rustenburg Refiners (Proprietary) LimitedBMessina Nickel Mining and Exploration Company of Africa (Proprietary) LimitedCMicawber 146 (Proprietary) LimitedEMiddelpunt Hill Management Services (Proprietary) LimitedANorbush Properties (Proprietary) LimitedCNorsand Holdings (Proprietary) LimitedCPGI SA (i)KPGI (Italia) S. r. I (v) *KPGI KK (vi)KPGI (United Kingdom) Limited (vii)KPlatinum Gilde International Deutschland Gmbh (viii)KPGM (Brakspruit) (Proprietary) LimitedCPlatinum Air Services LimitedGPlatinum Open Cast Services (Proprietary) LimitedAPlatinum Prospecting Company (Proprietary) LimitedCPlatmed (Proprietary) LimitedHPrecious Metal Refiners (Proprietary) LimitedBPyramid Platinum LimitedCRustenburg Base Metals Refiners (Proprietary) LimitedBTransvaal Land and Development Company (Proprietary) LimitedCWhiskey Creek Management Services (Proprietary) LimitedEEAEAADEAll companies are incorporated in the Republic of South Africa except where otherwise indicated.i Incorporated in Switzerland v Incorporated in Italyii Incorporated in the Isle of Man vi Incorporated in Japaniii Incorporated in Liberia vii Incorporated in United Kingdomiv Incorporated in the British Virgin Islesviii Incorporated in Germany*Represents a 100% membership.178

Holding companyNumber of shares held Book value current accounts31 December 31 December 31 December 31 December 31 December 31 December2000 1999 2000 1999 2000 1999Rm Rm Rm Rm180 709 809 180 709 809 580,7 580,7 234,9 235,0129 568 618 129 568 618 228,6 228,6 — —500 500 0,1 0,1 — —129 762 372 129 762 372 739,0 739,0 — —426 288 426 228 842,3 842,3 202,1 201,8100 100 1,5 1,5 — 238,02 000 1 1 898,1 — (6,6) —23 250 23 250 — — (113,7) (162,4)1 1 — — — —1 1 — — — —500 500 — — — —100 — — — — —100 100 — — — —250 000 250 000 — — — —525 000 525 000 — — — —100 100 — — — —5 5 — — — —100 100 — — — —100 100 — — — —100 100 — — — —120 000 120 000 — — — —450 000 450 000 — — — —1 360 100 1 360 100 — — — —1 000 1 000 — — — —1 1 — — — —1 1 — — — —375 000 375 000 — — — —14 14 — — — —100 100 — — — —R12 451 R12 451 — — — —40 000 40 000 — — — —2 2 — — — —50 000 50 000 — — — —200 000 200 000 — — — —100 100 — — — —1 1 — — — —508 000 508 000 — — — —100 100 — — — —1 000 1 000 — — — —1 000 1 000 — — — —1 000 1 000 — — — —220 220 — — — —1 000 1 000 — — — —4 290,3 2 392,2 316,7 512,4Nature of businessA – Mining E – Financial I – PropertyB – Treatment and refining F – Recruitment J – InsuranceC – Minerals and surface rights holding G – Air chartering K – MarketingD – Metals tradingH – Medical facilities179

N o tes to theFinancial Statements" for the year ended 31 December (continued)Annexure DEQUITY COMPENSATION BENEFITSAnglo Platinum share option scheme2000 1999EmployeesEmployeesDirectors and others (1) Total Directors and others (1) TotalOUTSTANDINGAT 1 JANUARY 741 811 3 582 259 4 324 070 986 912 3 630 858 4 617 770Allocations 94 690 704 459 799 149 82 733 806 289 889 022Exercised 132 080 793 749 925 829 131 028 905 227 1 036 255Lapsed — 34 491 34 491 — 146 467 146 467Net re-allocation (2) (70 518) 70 518 — (196 806) 196 806 —OUTSTANDINGAT 31 DECEMBER 633 903 3 528 996 4 162 899 741 811 3 582 259 4 324 070Share options allocatedduring the year: 94 690 704 459 799 149 82 733 806 289 889 022Expiry date 2 010 2 010 2 010 2 009 2 009 2 009Allocations per share (R) 163,00 – 204,70 163,00 – 319,20 163,00 – 319,20 131,40 – 138,40 80,80 – 184,00 80,80 – 184,00Aggregate proceeds if sharesare issued (Rm) 16,7 160,3 177,0 11,0 103,0 114,0Number of shares exercised 132 080 793 749 925 829 131 028 905 227 1 036 255Allocation price per share (R) 29,93 – 70,20 29,46 – 204,70 29,46 – 204,70 29,93 – 67,39 24,20 – 80,50 24,20 – 80,50Exercise price per share (R) 187,00 – 329,00 157,20 – 370,00 157,20 – 370,00 97,10 – 194,20 94,50 – 194,20 94,50 – 194,20Aggregate issue proceeds (Rm) 8,5 48,7 57,2 6,4 46,8 53,2(1) Consists of employees of the Company, Western Areas Limited and Johnnic Holdings Limited.(2) Net re-allocations relate to appointment and resignation during the year of Executive Directors and their Alternates.180

Annexure D (continued)EQUITY COMPENSATION BENEFITS (continued)Terms of the options outstanding at 31 DecemberAllocation 31 December 31 DecemberPrice 2000 1999R Number NumberEXPIRY DATE31 December 2000 — 15 68931 December 2001 32,48 7 360 27 57931 December 2002 29,93 – 35,98 103 262 176 45331 December 2003 35,35 – 42,02 17 008 20 45031 December 2004 55,09 – 67,50 94 670 130 46531 December 2005 29,93 – 61,96 73 271 227 05931 December 2006 44,57 – 71,00 292 963 469 52231 December 2007 60,59 – 81,52 579 565 776 54831 December 2008 62,40 – 91,70 1 374 093 1 591 28431 December 2009 80,80 – 184,00 851 514 889 02231 December 2010 163,00 – 319,20 769 193 —4 162 899 4 324 070Options are exercisable as follows:20% – 2 years after allocation40% – 3 years after allocation60% – 4 years after allocation100% – 5 years after allocationSubject to certain circumstances, which include, inter alia, the retrenchment or death of a participant, each option granted will remainin force for a period of ten years from the date of the granting of such option. Where employees retire, options vest on date ofretirement.181

Anglo American Platinum Corporation Limited(Incorporated in the Republic of South Africa)(Date of incorporation: 13 July 1946)Registration number 1946/022452/06DirectorateExecutive DirectorsBarry Erskine Davison (55)BA WitsManaging DirectorJoined the Group in 1973Appointed a Director 1988During his period of service with Johannesburg ConsolidatedInvestment Company, Limited (Johnnies) from 1973 to 1994,was an Executive Director of that company and held variousdirectorships of Johnnies Group companies. Currently aDirector of Anglo Platinum Group subsidiaries, a Director ofAnglo American Corporation of South Africa (AACSA),Nedcor Investment Bank and Northam Platinum and Vice-President of the Chamber of Mines of SA. Appointed amember of the Executive Committee of Anglo American plcin December 2000.Eric Ford (46) (British)MSc Man. Science (Imperial College, London),BSc (Min Eng) (cum laude) WitsExecutive Director: OperationsJoined the Group in 1999Appointed a Director 1999Occupied various mine management and ConsultingEngineering positions in Anglo Coal from June 1971 until1997. Became President and CEO of Anglo American’s jointventure coal mining operation in Colombia in January1998. Also a Director of Anglo Platinum Group subsidiariesand Northam Platinum.Bheki Eric Ngubane (46)MA (cum laude), Warwick, MSc, LondonJohn Arthur Dreyer (56)Executive Director: Business Development and PlanningJoined the Group in 1998Appointed a Director 1998Practised as an attorney and was Managing Director of ShellSA in charge of minerals. Joined Tavistock Collieries Limitedin 1997 as CEO. Joined Anglo Platinum in 1998. Also aDirector of Anglo Platinum Group subsidiaries.Dorian Theodore Gerald Emmett (49)BSc (Elec Eng) Wits, MBL (cum laude) UnisaChief Operating Officer and Executive Director: CommercialJoined the Group in 1975Appointed a Director 1991Joined Johnnies in 1975 and held various engineeringpositions. Was later appointed Consulting Engineer andTechnical Director of Anglo Platinum. In January 1996, wasappointed Anglo Platinum Executive Director: Commercial.Also a Director of Anglo Platinum Group subsidiaries.Appointed Chief Operating Officer of Anglo Platinum fromExecutive Director: Human ResourcesJoined the Group in 1997Appointed a Director 1998Has occupied various directorships and senior humanresources positions at Appletiser, Corobrik and SAB BeerDivision. Also a Director of Anglo Platinum Groupsubsidiaries and an Alternate Director of Northam Platinum.Roeland Herman Hendrikvan Kerckhoven (48) (Belgian)B.Com, MBL, UnisaExecutive Director: FinanceJoined the Group in 1977Appointed a Director 1994After joining Johnnies in 1977, occupied various JohnniesGroup financial positions. Became Financial Director ofJohnnies – Platinum Division in 1994. Was appointedAnglo Platinum Executive Director: Finance in 1994. Also aDirector of Anglo Platinum Group subsidiaries and aDirector of Northam Platinum.1 March 2001.182

Non-Executive DirectorsLeslie Boyd (64)C.Eng F.I.M (UK)Non-Executive ChairmanAppointed a Director 1995An Executive Vice-Chairman of Anglo American plc, anExecutive Deputy Chairman of AACSA, Chairman ofHighveld Steel and Ford Motor Company of SA. Holdsvarious other directorships. Founding President of theSouth African Chamber of Business, past Chairman ofBusiness South Africa and immediate past President of theSouth Africa Foundation.William Alan Nairn (56)BSc Eng (Mining) WitsAppointed a Director 2000Joined the Johnnies Group in 1964 and became Chairmanof Gold Division companies in 1994 and Managing Directorof JCI Limited. Was appointed a Director of AACSA in 1997and in December 2000 was appointed as a member of AngloAmerican plc Executive.George Rupert Pardoe (44)BA, UCT. BA Hons (cum laude) UnisaAppointed a Director 1997Colin Bertram Brayshaw (65)C.A.(S.A.), FCAAppointed a Director 1996Retired managing partner and Chairman of Deloitte & Touche.Non-Executive Director of various companies includingAngloGold, Coronation Holdings, Industrial DevelopmentCorporation and Johnnic Holdings Limited.James Wilbert Campbell (51)BSc (Queen’s University, Belfast)Appointed a Director 2000Became an Executive Director of AACSA in 1996 and in 1999was appointed an Executive Director of Anglo American plcresponsible for the Coal and Base Metals Divisions. Non-Executive Director of various companies including AngloGoldand De Beers Consolidated/Centenary.Michael Wallis King (63)C.A.(S.A.), FCAAn Executive Director of AACSA. Holds various otherdirectorships in companies in which AACSA has interests.Director of FirstRand and FirstRand Bank.Patrick Frank Retief (68)Originally appointed a Director 1969Retired 1996 – re-appointed a Director 1997Joined Johnnies in 1962. Was appointed Chairman in 1990and held various directorships of Johnnies Group companiesincluding Rustenburg Platinum. Currently also a Director ofJohnson Matthey plc.Anthony John Trahar (51)B.Com, C.A. (S.A.)Appointed a Director 1999Chief Executive Officer of AACSA and Anglo American plc.Chairman of its Forest Products and Industrial MineralsDivisions.Appointed a Director 1979An Executive Vice-Chairman of Anglo American plc, and anExecutive Deputy Chairman of AACSA. Holds various otherdirectorships including AngloGold and Tongaat Hulett, andis Deputy Chairman of FirstRand and FirstRand Bank andis a Director of Momentum Group.183

Directorate" (continued)Alternate DirectorsArthur Harry Calver(53) (British)BSc (Hons) Mech. Eng (Newcastle, UK)Appointed Alternate Director 2000Deputy Technical Director (Engineering) AACSA. PreviouslyConsulting Engineer and Technical Director of AACZimbabwe from 1991 to 1993. Holds various otherdirectorships/alternate directorships in companies in whichAA plc has interests.Richard Pilkington(40)NHD Ext. MetJoined the Group in 1990Appointed Alternate Director in 2000 and Divisional Director:Process Operations 2000Occupied various positions at Johnnies and Lindum Reefsuntil 1990. In 1990 moved to Precious Metals Refineries andoccupied positions within the Process Division until 2000.Appointed Alternate Director 1999John MichaelHalhead (51) (British)BSc (Eng) (Hons) – Chem. Metallurgyand Process EngineeringJoined the Group in 1982During his period of service with Johnnies was ConsultingMetallurgist – Group Plant Projects. Currently DivisionalDirector: Technology.Vincent PatrickUren (39)C.A.(S.A.)Appointed Alternate Director 2000Joined the AACSA Corporate Finance Division in 1989 andwas appointed Senior Vice-President – Corporate Finance inJanuary 2000. Holds various directorships and alternatedirectorships in companies in which AACSA has interests.Peter James VivianKinver (45) (British)BSc (Hons) Eng – Mining, RoyalSchool of MinesJoined the Group in 2000Appointed Alternate Director and Divisional Director: Mines(West) in 2000From 1976 to 1992 held various positions at mines in theGold Fields of South Africa group. Was General Manager toOman Mining Company from 1992 to 1996 and becameManaging Director of Obuasi and Ayanfuri Mine in Ghanauntil 1998. Was Managing Director of Syama Gold Minefrom 1998 to 2000.184

Corporate and Divisional OfficeManagement and AdministrationCORPORATE OFFICEChief Executive OfficerB E DavisonManaging DirectorBreakthroughB R FleetwoodActing Divisional Director: BreakthroughGroup Public AffairsM N MtakatiGroup Public Affairs ManagerT R TryonSenior Manager: Public AffairsB SokutuSenior Manager: Public AffairsBusiness Developmentand PlanningJ A DreyerExecutive Director: BusinessDevelopment and PlanningDr R C BaxterGeneral Manager: Business Developmentand PlanningD S L BostockGeneral CounselP L BroganSenior Manager: PlanningA J CollierSenior Manager: Legal andResource ManagementD R ThomasonSenior Manager: PlanningP E du PreezSenior Planning ManagerS A FritzSenior Manager: Legal andResource ManagementR W HieberConsulting GeologistJ A WoodBusiness Planning ConsultantCommercialD T G EmmettActing Executive Director: CommercialT E AikenGeneral Manager: Base MetalsJ CourageChief Executive: Platinum GuildInternationalP O von ZahnBusiness Manager: PMTFinanceR H H van KerckhovenExecutive Director: FinanceG A BotesGroup Tax ConsultantG W BroughSenior Manager: Corporate FinanceC G BuchananGroup TreasurerO P CresseyManager: Group ManagementInformationW GrundlingManager: Group Financial Advisory andOperations SupportG R HiggoCorporate Finance ManagerT KritzingerManager: Group Financial AccountingJ B MartinGeneral Manager: Group AuditDr L McBeyGroup Medical ConsultantC G RedmeadManager: Group Shared Admin ServicesJ F v B SerfonteinSenior Manager: Financial Projectse BusinessM SnymanGeneral Manager: Group FinanceA FowlerSenior Manager: Financial ProjectsT G RaymondSenior Manager: Investor RelationsGroup Information ServicesM T RamabulanaGeneral Manager: Information ServicesS E RasmussenSenior Manager: Information ServicesJ H ThompsonSenior Manager: Information ServicesA G W KnockBusiness Manager: Project GatewayCompany SecretaryD A FreemantleSenior Manager: Group SecretarialServicesHuman ResourcesB E NgubaneExecutive Director: Human ResourcesJ A GeldenhuysGeneral Manager : Human ResourcesS H ZondiEmployee Relations ConsultantOperationsCorporate OfficeE FordExecutive Director: OperationsP CharlesworthDivisional Director: Process TechnologyDevelopmentDr J R JohnstonGroup Safety, Health and EnvironmentCo-ordinatorE F HeymannEnvironmental ConsultantD J StantonGroup Ventilation ConsultantDivisional OfficeMines DivisionP J V KinverDivisional Director: MinesP M CoetzerRegional Manager: RustenburgC J LabuschagneRegional Adviser: EngineeringJ SmitRegional Adviser: EngineeringM van der SchyffRegional Adviser: Engineering185

Corporate and Divisional OfficeManagement and Administration" (continued)C I GriffithBusiness Manager: Bafokeng-RasimoneMineA RudolphBusiness Manager: RPM RustenburgMines WestC A F SweetBusiness Manager: RPM UnionP R S van DorssenBusiness Manager: RPM RustenburgWaterval MineF A UysBusiness Manager: RPM AmandelbultProcess divisionR PilkingtonDivisional Director: Process OperationsD E SpannBusiness Manager: PMRT N HolohanBusiness Manager: Waterval SmelterA N JonesBusiness Manager: RBMRTechnology DivisionJ M HalheadDivisional Director: Technologyand ServicesA BassonManager: Group PurchasingJ J A BothaManager: Group Engineering ServicesA J FieldManager: Mining TechnologyC RuleManager: Process TechnologyP GreavesManager: Commercial ServicesG A HarrisonManager: Research and DevelopmentA S LambertManager: Mineral Processing ResearchJ M MaddisonConsulting Electrical EngineerK R NobleConsultant: Rock MechanicsA J RaubenheimerGroup Mining Engineer: ProjectsL C PretoriusManager: Project Management ServicesD G WanbladSenior Projects ManagerG M WrightManager: Research and DevelopmentAdministrationCOMPANY SECRETARYD A FreemantleFINANCIAL, ADMINISTRATIVEAND TECHNICAL ADVISERSAnglo Platinum ManagementServices (Proprietary) LimitedCORPORATE AND DIVISIONALOFFICE, REGISTERED OFFICE,BUSINESS AND POSTALADDRESSES OF THESECRETARY ANDADMINISTRATIVE ADVISERS28 Harrison StreetJohannesburg, 2001PO Box 62179Marshalltown, 2107Telephone (011) 373-6111Facsimile (011) 834-2379373-5111Internet address :http://www.angloplatinum.comSOUTH AFRICAN SHARETRANSFER SECRETARIESComputershare Services LimitedSecond Floor, Edura41 Fox StreetJohannesburg, 2001GautengPO Box 61051Marshalltown, 2107Telephone (011) 370-7700Facsimile (011) 836-0792836-6145LONDON COMMITTEEMEMBERSG M HolfordG A WilkinsonLONDON SECRETARIESAnglo American Services(UK) Limited20 Carlton House TerraceLondon SW1Y 5ANEnglandTelephone (0207) 698-8888Facsimile (0207) 698-8755UNITED KINGDOMREGISTRARSIRG PlcBalfour House390-398 High RoadIlford, Essex IG1 1NQEnglandTelephone (0181) 478-8241Facsimile (0181) 478-7717AUDITORS TO ANGLOPLATINUM AND ANGLOPLATINUM MANAGEMENTSERVICES (PROPRIETARY)LIMITEDDeloitte & ToucheDeloitte & Touche PlaceThe WoodlandsWoodmead, Sandton, 2196AUDITORS TO RPM,PPRUST AND LEPLATSErnst & YoungErnst & Young House4 Pritchard StreetJohannesburg 2001186

Mine and Refinery ManagementRustenburg Platinum Mines LimitedRUSTENBURG SECTIONRUSTENBURG EAST MINEP M CoetzerP M CoetzerRegional ManagerBusiness ManagerBAFOKENG-RASIMONE MINEC I GriffithBusiness ManagerPO Box 8208Rustenburg, 0300Telephone (014) 598-9111Facsimile (014) 567-1383PO Box 8208Rustenburg, 0300Telephone (014) 598-9111Facsimile (014) 567-1383PO Box 4971Rustenburg, 0300Telephone (014) 573-1300Facsimile (014) 573-1474RUSTENBURG WEST MINEA RudolphBusiness ManagerPO Box 8208Rustenburg, 0300Telephone (014) 598-9111Facsimile (014) 567-1383RUSTENBURG WATERVALP R S van DorssenBusiness ManagerPO Box 8208Rustenburg, 0300Telephone (014) 598-9111Facsimile (014) 567-1383AMANDELBULT SECTIONF A UysBusiness ManagerPO Box 2Chromite, 0362Telephone (014) 784-1111Facsimile (014) 784-1230UNION SECTIONC A F SweetBusiness ManagerPrivate Bag 351Swartklip, 0370Telephone (014) 786-1000Facsimile (014) 786-0223WATERVAL SMELTERT N HolohanBusiness ManagerPO Box 331Kroondal, 0350Telephone (014) 591-5000Facsimile (014) 591-5008POTGIETERSRUST PLATINUMSLIMITEDD W PelserBusiness ManagerMine officePrivate Bag X2463Potgietersrus, 0600Telephone (015) 418-2000Facsimile (015) 418-2018LEBOWA PLATINUM MINESLIMITEDT S O’ConnorBusiness ManagerMine Office: Atok SectionPO Box 1, Atok, 0749Telephone (015) 619-0044Facsimile (015) 619-0010ANGLO PLATINUM RESEARCHCENTREG M WrightManager – Research and DevelopmentPO Box 6540Homestead, 1412Telephone (011) 871-9800Facsimile (011) 828-8990RefineriesPRECIOUS METALS REFINERS(PROPRIETARY) LIMITEDCorporate and Divisional Office28 Harrison StreetJohannesburg, 2001PO Box 62179Marshalltown, 2107Telephone (011) 373-6111Facsimile (011) 373-5111PlantD E SpannBusiness ManagerAdministrative BuildingPortion 4 of Klipfontein300 JQ, Bleskop, 0292Rustenburg DistrictPO Box 331, Kroondal, 0350Telephone (014) 567-9111Facsimile (014) 567-9261RUSTENBURG BASE METALSREFINERS (PROPRIETARY)LIMITEDCorporate and Divisional Office28 Harrison StreetJohannesburg, 2001PO Box 62179Marshalltown, 2107Telephone (011) 373-6111Facsimile (011) 373-5111PlantA N JonesBusiness ManagerAdministrative BuildingPortion 4 of Klipfontein300 JQ, Bleskop, 0292Rustenburg DistrictPO Box 483, Rustenburg, 0300Telephone (014) 591-4000Facsimile (014) 591-1102187

Notice to membersAnnual General MeetingThe Annual General Meeting of members of AngloAmerican Platinum Corporation Limited will be held inthe Auditorium, ground floor, 28 Harrison Street,Johannesburg, on Friday, 25 May 2001, at 14:30 for thefollowing purposes:Ordinary business1. To receive and consider the Group annual financialstatements for the year ended 31 December 2000.2. To elect Directors in place of those retiring in termsof the Articles of Association:(a) Mr L Boyd(b) Dr J W Campbell(c) Mr B E Davison(d) Mr J A Dreyer(e) Mr M W King(f) Mr W A Nairn(g) Mr G R Pardoe(h) Mr R H H van KerckhovenSpecial business3. SPECIAL RESOLUTION NO. 1 –Amendment of Articles of AssociationRESOLVE: That the Articles of Association of theCompany be and they are hereby amended as follows:(1) The words “Reduction of Capital” are deletedfrom the heading to article 41, and the words“Acquisition of Own Shares” are substitutedtherefor;(2) Sub-article 41(f) is hereby deleted and thefollowing substituted as a new sub-article 41(f):“approve the acquisition of shares or debentures issuedby the Company or, if the Company is a subsidiary, by itsholding company;”(3) The following article is inserted as a new article 142:“Payments to Members142. Notwithstanding the provisions of the precedingarticles, insofar as they relate to payment ofdividends or distributions to members, theCompany may from time to time, subject tothe provisions of the Statutes, make paymentsto members.”(4) The following is inserted as a new article 143:“Share Premium Account and Capital RedemptionReserve Fund143. The Company may from time to time, subject toany requirements which may be imposed by theStatutes, by ordinary resolution authorise thedirectors to distribute all or any part of the amountfor the time being standing to the credit of or dealwith, in any way recommended by the Directorsor authorised by the Statutes, any share premiumaccount or capital redemption reserve fund of theCompany, save that the provisions of this articleshall not apply in respect of any action properlytaken by the Company in terms of Sections 76(3)or 98(4) of the Act.”(5) Articles 12, 14, 15, 16, 20 and 22 be and are herebyamended by the insertion of the followingwording at the beginning of each of the Articles:“Save as is provided in terms of section 91A ofthe Act,”The reason for sub-items (1) – (4) of special resolutionNo. 1 is that it is desired to amend the Articles ofAssociation of the Company in line with recentamendments to the Act, in relation to the acquisitionby the Company of its own shares, reduction ofcapital and payments to shareholders. The reason forsub-item (5) of special resolution No. 1 is that it isdesired to amend the Articles of Association of theCompany in line with recent amendments to the Act,in relation to the implementation of the new electronicsettlement system and custody system by the JSESecurities Exchange South Africa. The effect of specialresolution No. 1 is to amend the Company’s Articlesof Association to allow the Company to:● repurchase shares issued by the Company;● reduce its share capital, share premium, reservesand/or any capital redemption reserve fund;● make payments to shareholders;● transfer to the STRATE system of electronic settlementwhen required to do so by the JSE SecuritiesExchange South Africa.188

4. SPECIAL RESOLUTION NO. 2 –General authority to permit the Companyand/or any of its subsidiaries to acquire sharesof the CompanyRESOLVE: That, subject to the passing andregistration of special resolution No. 1 to be proposedat the Annual General Meeting at which this specialresolution is proposed as special resolution No. 2,the Company from time to time be and is herebyauthorised, by way of a general authority, to acquireordinary shares of 10 (ten) cents each (“ordinaryshares”) issued by the Company in terms of section85 of the Companies Act No. 61 of 1973 as amended,and in terms of the Listings Requirements from timeto time of the JSE Securities Exchange South Africa(“the Listings Requirements”), it being recorded thatsuch Listings Requirements currently require, inter alia,that the Company may make a general repurchase ofsecurities only if:(1) any such repurchase of ordinary shares shall beimplemented on the open market of the JSESecurities Exchange South Africa (JSE) or anyother stock exchange on which the shares arelisted and on which the Company may wish toimplement any repurchase or ordinary shareswith the approval of the JSE and any other suchstock exchange, as necessary.(2) this general authority shall only be valid untilthe Company’s next annual general meeting,provided that it shall not extend beyond fifteenmonths from the date of passing of this specialresolution No. 2;(3) the repurchase of the ordinary shares may notbe made at a price greater than 10% (ten percent) above the weighted average of the marketvalue of such ordinary shares for the 5 (five)business days immediately preceding the dateof the transaction;(4) when the Company has cumulatively repurchased3% (three per cent) of the number of ordinaryshares in issue on the date of passing of thisspecial resolution No. 2, and for each 3% thereofin aggregate, acquired thereafter, an announcementmust be published as soon as possible and notlater than 08:30 on the business day followingthe day on which the relevant threshold isreached or exceeded, and the announcementmust comply with the Listings Requirements.(5) any general repurchase by the Company ofthe Company’s ordinary shares in issue shallnot in aggregate, in any one financial year,exceed 20% (twenty per cent) of the Company’sissued ordinary share capital.The reason for special resolution No. 2 is to obtaina general approval in terms of the Companies ActNo. 61 of 1973, as amended from time to time, andthe Listings Requirements of the JSE SecuritiesExchange South Africa to grant the Companyauthority to repurchase ordinary shares in theCompany which general approval shall only bevalid until the next Annual General Meeting ofthe Company provided that the general authorityshall not extend beyond 15 months from the dateof passing of the special resolution. The effect ofspecial resolution No. 2 will be to allow theCompany to repurchase its own ordinary shares.The Board has decided in view of the fact that theGroup has accumulated large cash reserves whichare likely to grow despite the extensive expansionprogramme and the capital expenditure associatedtherewith, that it may be opportune from time totime to repurchase shares in accordance with theListings Requirements of the JSE. As at the dateof this Notice, the Board has not made a formaldecision to repurchase ordinary shares in the capitalof the Company. However, the Board believes it tobe in the best interest of shareholders that a specialresolution be passed granting the Company ageneral authority to acquire its own shares.The Company’s Board has considered the impactof a repurchase of up to a maximum of 10% of theCompany’s issued ordinary share capital under a189

Notice to members" (continued)general authority during the 12 months afterthe date of this Notice of Annual General Meetingand is of the opinion that such repurchase will notresult in:● the Company and the Group in the ordinarycourse of business being unable to pay its debtsfor a period of twelve months after the date ofthis Notice of Annual General Meeting;● the liabilities of the Company exceeding its assets,calculated in accordance with the accountingpolicies used in the audited financial statementsfor the year ended 31 December 2000, for aperiod of twelve months after the date of thisNotice of Annual General Meeting;● the ordinary capital and reserves of the Companyfor a period of twelve months after the date ofthis Notice of Annual General Meeting beingmaterially affected;● the working capital of the Company for a periodof twelve months after the date of this Notice ofAnnual General Meeting being materially affected.5. ORDINARY RESOLUTION NO. 1 –Placing unissued capital under the controlof the DirectorsRESOLVE: That subject to the provisions of theCompanies Act, 1973, as amended, and the listingrequirements of the JSE Securities Exchange SouthAfrica, the authorised but unissued ordinary sharesof 10 cents each in the capital of the Company beplaced under the control of the Directors who arehereby authorised to allot and issue all or anyportion of such shares upon such terms and conditionsas they may determine.6. ORDINARY RESOLUTION NO. 2 – STRATERESOLVE: That the Directors of the Company beand are hereby authorised to convert to STRATE(Share Transactions Totally Electronic), as and whenrequired to do so by the JSE Securities ExchangeSouth Africa.7. ORDINARY RESOLUTION NO. 3 –Signature of documents, etc.RESOLVE: That any Director or Alternate Directorof the Company be and is hereby authorised tosign all such documents and to do all such thingsas may be necessary for or incidental to theimplementation of the above-mentioned specialand ordinary resolutions to be proposed at theAnnual General Meeting.8. ORDINARY RESOLUTION NO. 4 –Directors’ feesRESOLVE: That in terms of article 71(b) of theCompany’s Articles of Association, the remunerationof the Directors of the Company for the year ending31 December 2001 be and the same is hereby fixed atthe rate of R30 250 per annum for each Directorand that the Chairman shall, in addition to hisremuneration at the rate of R30 250 per annum as aDirector, be paid a further sum at the rate of R12 100per annum and that such remuneration be payablewith effect from 1 January 2001.Any member of the Company entitled to attend and voteat the meeting is entitled to appoint more than one proxyto attend, speak and vote in his stead. A proxy need notbe a member of the Company. A form of proxy is enclosedherewith. In order to be effective, the properly completedproxy form must be deposited at the offices of theTransfer Secretaries, Johannesburg, or at the offices ofthe United Kingdom Registrars not less than 48 hoursbefore the time appointed for the holding of the meeting.The transfer books and register of members of theCompany will be closed on Thursday 24 and Friday25 May 2001, both days inclusive.By order of the BoardD A FreemantleCOMPANY SECRETARYJohannesburg28 March 2001190

Shareholders’ diaryAnnual General Meeting (2000 year) 25 May 2001 at 14:30ReportsInterim report for half year to 30 June 2001 published August 2001Preliminary report for year to 31 December 2001 published February 2002Annual report for year to December 2001 released March 2002Annual General Meeting (2001 year) May 2002DividendsInterim – Declared August 2001– Payable September 2001Final – Declared February 2002– Payable March 2002Shareholders are reminded to notify the Transfer Secretaries or the United Kingdom Registrars of any change of address.Registered Office28 Harrison StreetJohannesburg, 2001(PO Box 62179, Marshalltown, 2107)London SecretariesAnglo American Services (UK) Limited20 Carlton House TerraceLondon SW1Y 5ANEnglandSouth African Share TransferSecretariesComputershare Services LimitedSecond Floor, Edura41 Fox Street, Johannesburg, 2001(PO Box 61051, Marshalltown, 2107)United Kingdom RegistrarsIRG plcBalfour House390-398 High Road, IlfordEssex IG1 1NQ, England191

AcknowledgementsAcknowledgements for photographic materialPLATINUM GUILD INTERNATIONAL, JOHNSON MATTHEY PLC,TANAKA KIKINZOKU KOGYO KK (TOKYO),DAIMLERCHRYSLER, CARTIER (PARIS) AND HONDA MOTOR CORPORATIONAcknowledgements for jewellerySID FOREMAN (PTY) LTD – SANDTON CITYSIDERSKY JEWELLERS NEW GENERATION – SANDTON CITY AND FOURWAYS MALLSHIMANSKY COLLECTION (CAPE TOWN)Other acknowledgementsINTERNATIONAL PLATINUM ASSOCIATIONWhilst great care has been taken to ensure that all the information and statistics herein are accurate, no responsibility canbe accepted for any mistakes, errors or omissions or for any action taken in reliance thereon. Opinions expressed hererepresent those of Anglo Platinum at the time of publication.This report is printed on environmentally friendly paper and is totally chlorine-free.192

If you know where to look, you’ll discover true value.Most investors know Anglo Platinum as an exceptional investment that consistently outperformsexpectations. Look a little closer, however, and you’ll discover a company with aproven strategy that understands true value.As the world’s largest producer of platinum, Anglo Platinum provides employment andincomes to thousands, creating a circle of prosperity that touches the lives of millions.With an exceptional commitment to sustainable growth, Anglo Platinum will continue toinvest for the prosperity of all its stakeholders.WORLD LEADER IN PLATINUMMember of the Anglo American plc groupwww.angloplatinum.comBASTION GRAPHICS