Entire Annual Report - Anglo American Platinum

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