Entire Annual Report - Anglo American Platinum

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