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. <strong>Anglo</strong> <strong>Platinum</strong> 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 <strong>Anglo</strong><strong>American</strong> plc group, with the active participation of seconded staff from <strong>Anglo</strong><strong>American</strong> 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 1996<strong>Platinum</strong> (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 4,2906<strong>Platinum</strong> (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 production<strong>Platinum</strong> (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