An Anglo Platinum Group Company World Leader in Platinum RUSTENBURG - - PowerPoint PPT Presentation

An Anglo Platinum Group Company

World Leader in Platinum

Concentrators Smelters RBMR Cu Cu Ni Ni Co Co Na Na2

2SO

SO4

4

Metallics

Mines PMR PMR

Low Grade Residues

Pt Pd Pd Rh Rh Ir Ir Ru Ru Os A Au

RUSTENBURG PLATINUM CIRCUIT

PMR FLOWSHEET

Dissolve Platinum SX Pt - Sidestream Ruthenium Distillation Ru - Sidestream Iridium SX Ir - Sidestream Value Recovery Effluent Storage Pure Metal Handling Despatch/Sales Rhodium Extraction Rh - Sidestream Osmium Level 3 Pd - Sidestream Palladium SX Au - Sidestream Gold SX

SAFETY SAFETY

LTIFR 2000 - 2004

0.2 0.4 0.6 0.8 1 1.2

Rate

LTIFR 1 0.54 0.11 0.12 2000 2001 2002 2003 2004

SHE STRATEGY

• Total integration of Safety, Health, Environment and Quality.
• Maintain existing NOSA five star, NOSCAR, ISO 14 001:2004, OHSAS

18 001:1999 and ISO 9001:2000 status.

• Maintain focus on visible felt leadership.
• Enforce OTTO (ZERO TOLERANCE,TARGET ZERO) and adherence of the

six Platinum rules.

• Empowerment of people through SHEQ training.
• Promote SHEQ awareness.
• Ensure legal compliance (audits).

SHE ACHIEVEMENTS

• NOSA five star for 14 consecutive years
• NOSCAR status for 10 consecutive years
• OHSAS 18 001:1999 certified company
• ISO 14 001:2004 certified company
• ISO 9001:2000 certified company
• NOSA top 20 company- SHE integrated system

PRODUCTION PRODUCTION

Rustenburg Section

RE REFINED P PLATINUM O OUNCES

• 500

1,000 1,500 2,000 2,500 3,000

Pt Pt O Oz pa pa (000)

R efined P t Ounces 1,871 2,109 2,251 2,307 2,453 2000 2001 2002 2003 2004

OPERATING OPERATING COSTS COSTS

Rustenburg Section

CA CASH CO COST P PER R REFINED P Pt OU OUNCE

100.00 150.00 200.00 250.00 300.00 350.00 400.00 R and nd per R R efine ned P P t O Ounc nc e C ost / P t Oz 320.00 310.00 334.00 345.00 329.00 2000 2001 2002 2003 2004

Cash On Mine Cost

CASH COSTS 2004

Stores 31% Toll treatment 12% Sundries 11% Utlities 7% Labour 39%

PM PMR T TOTAL C CAPI PITAL PR PROFILE

• 100

200 300 400 500 600 700

Capex R R M Millio lion

E xpansion capex 4 22 165 520 395 Security Ongoing C apex 15 81 10 Other Ongoing C apex 8 11 18 16 38 2000 2001 2002 2003 2004

CAPITAL EXPENDITURE

PMR Capacity Increase Project Capex Profile

100,000 200,000 300,000 400,000 500,000 600,000 2001 2002 2003 2004 2005 2006 Year Capex RM 2001 2002 2003 2004 2005 2006

Latest Cost Forecast to completion: R1 238 319

CAPACITY INCREASE CAPACITY INCREASE PROJECT PROJECT

PROJECT SAFETY RECORD PROJECT SAFETY RECORD

• As of the end of April 2005:

– Two Restricted Work Cases (RWC) and 11 Lost Time Injuries (LTI) to date. – Total hours worked on site: 6 215 604 – Total hours since last LTI: 1 204 064 – LTIFR (incl. RWC): 0.35 – Number of contractors on site: 235

ORIGINAL PROJECT APPROACH - Y2000

• Original expansion strategy for PMR was to expand production from 2 million oz

T Pt in 2000 to 3.5 million oz T Pt in 2006.

• Approach selected for providing additional capacity was sequential expansion

that addressed, in order of priority, identified constraints. Various areas of PMR would become constrained at different times between 2000 and 2006.

• Regarded as a low cost, high capital efficiency approach, as only constrained

areas were expanded and were to be addressed in time to meet the constraint.

• The Project was also to ensure that any possibility of expanding beyond 3.5

million oz T Pt equivalent production if ever required was not compromised. Modular approach to be taken where possible.

• Project started at the beginning of Y2001.

CHANGED BUSINESS SCENARIO – Y2003

• Revised Project Drivers:

– Group-wide initiative to rationalize capital expenditure on all projects. – 2.9 M oz T Pt equivalent production pa the next milestone (Y2006).

• However:

– Business benefits could be derived immediately from new / enhanced process areas e.g. new Rhodium treatment processes.

UNIQUE PROJECT FEATURES

• Health & Safety:

– Live plant containing flammable, corrosive and / or explosive chemicals. – Hazards present in areas dictated timing and scopes of work.

• Security:

– Construction / engineering more difficult and time consuming inside higher security areas of PMR due to security requirements. – Major new plant areas (utilities, new process areas) built outside security areas then incorporated into existing PMR at hot commissioning stages.

• Phasing:

– Major study & scoping phase of project initiated first to identify capacity constraints. – Process / utility areas of PMR sub-divided into 32 sub-projects, all of which were constrained or affected at different times leading up to 2006. – 32 separate sub-projects, at different project phases, running concurrently.

• Confidentiality:

– Security of process and commercial information a project priority.

CHANGE IN PROJECT COSTS – Y2003

(18.97%) (16.82%) Variance (296) (222) Variance (ZAR) 1 264 1 098 LCF 1 560 1 320 Approved Nominal Money Terms (ZAR millions) Constant mid 2002 Money Terms (ZAR millions)

HOW WAS THIS ACHIEVED?

• All studies on PMR areas completed, with bottlenecks and operational issues

identified.

• R & D work, pilot plant and plant based test work, carried out since start of

project in Y2001, reached successful conclusion of first major phase.

• Operational work arounds identified and implemented.
• Change in Project drivers.

CURRENT STATUS OF THE PMR EXPANSION PROJECT

• 88% of the sub-projects are complete and in production.
• New Rhodium plant commissioned and operating well.
• First half of new gold processing areas has been commissioned and is currently

being optimised. Commissioning of the second half is to start in July 2005.

• Remaining sub-projects to complete the PMR capacity increase will be

completed in 2006.

THANK YOU THANK YOU QUESTIONS ? QUESTIONS ?

An Anglo Platinum Group Company

World Leader in Platinum