Operations Review (Part 1) - Anglo Platinum

group and Anglo Platinumwill then be established overa discrete portion of eachproject area, while theremainder of each projectarea will be developed as a100% Anglo Platinum project.In the case of Twickenham,the empowerment jointventure is referred to as thePaschaskraal joint venture andthe Anglo Platinum 100%owned venture as theTwickenham project, whilethe Der Brochen projectarea refers to the 100%owned Anglo Platinumproject and the Booysendaljoint venture to theempowerment jointventure.In concluding these agreements,Anglo Platinum was‘credited’ for contributingmore than 26% of metalproduction to the venture.As a result of these credits,the Group will have satisfiedits empowerment requirementson any expansions it maywish to undertake atPPRust.The new production profile,illustrated in the chartson page 39, while mitigatingthe impact of miningauthorisationdelays, results in anumber of projects commissioningonly in 2005 and 2006.For a more detailed reviewon each project, I refer you tothe Overview: Projects onpage 52.R E T U R N O N E Q U I T Y( R O E )Given the size of AngloPlatinum’s expansion, and thecapital programme required tofund it, the timing of capitalexpenditure has a criticalimpact on the Group’s ROE.Given this, a concerted effortaimed at enhancing efficiencieswithin the operations, recognisedas the Continuous BusinessImprovement (CBI) initiative,previously known as ‘ProjectBreakthrough’, continued to beactive in 2002 with theimplementation of programmesfocused on improving theperformance of the coreprocesses within the business.Mining optimisation, mechanisationand concentratoroptimisation, the threemajor thrusts of CBI,have all contributed toenhancing our businessprocesses and I am confidentthat this initiative will help keepunit cost increases at our steadystateoperations at or below theinflation rate.O U T L O O K F O R 2 0 0 3The production target for 2003is 2,4 million ounces ofplatinum. The Group as a wholewill face many challenges,which I am confident we willmeet. I wish to thank theOperations Committee and eachindividual at all our operationsfor your commitment anddedication during the past year,and I look forward to workingwith you to making 2003 asafe and productive year.Dorian EmmettChief Operating OfficerJohannesburg27 March 200341