ANNUAL REPORT 2001 - Anglo Platinum

R E V I E W O F O P E R A T I O N S(continued)Chief Operating Officer’s Review2001 was a year ofmuch-improvedGroup operationalperformance in allrespects.Given the commitment, focus and energybeing applied to the Anglo Platinum safetyeffort, it is anticipated that performance inthis area will improve in 2002.2001 was a year of much-improvedGroup operational performance in allrespects. Refined production of PGMs was up12,7%, despite a slightly lower head graderesulting from a higher proportion of UG2.Not only did milled tons rise during 2001, butconcentrator performances were better.Notwithstanding the increase in output atsteady-state mines, the average numberof mine employees dropped 2,2% in 2001.As a result, productivity increases wererecorded across the board. The Technologyand Breakthrough divisions continued toresearch and develop new mining methodsand systems during 2001. Much of thework has been encouraging and willlikewise contribute to improved productivityas it is applied.Cash operating costs per ounce of PGM at steady-state operations rose 4,3% in 2001,well below the inflation rate.There were some negatives in 2001. Union Section, in spite of higher tonnages using feweremployees, experienced a drop in grades and recoveries that affected its overall performance.The conditions leading to these problems are well on the way to resolution. Leplats’ unit cash costswere relatively high in 2001, but should decline as expansions continue being implemented and assome synergy with the broader Eastern Limb expansion programme is realised. BRPM resolvedmany of its operational issues during 2001 and should have a much more satisfactory 2002 as itbegins to realise its potential.SUMMARY2001 Rustenburg Amandelbult Union PPRust Leplats BRPMTons milled (thousands) 7 733 7 086 4 466 4 270 1 397 1 892Built-uphead grade (g/ton) 5,38 5,68 4,40 4,38 4,26 4,42UG2 (%) 16 36 60 38 24Platinumounces refined (thousands) 719,1 679,3 280,4 211,1 89,1 130,2Cash costs (R/oz PGMs) 2 233 1 340 2 102 1 682 2 498 3 087Operatingmargin (%) 51,8 68,4 51,2 65,7 48,9 30,344