Entire Annual Report - Anglo American Platinum

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entered intobetween companies in the Anglo Platinum Group and the former Lebowa Stateand others were cancelled and superseded by a new agreement.The JVA gave the Anglo Platinum Group the right to mine the platinum groupmetals and the ores thereof on a number of farms in the Northern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